S.56(2) applied when a mortgage owing to a company owned by the individual accused ("Ramos") was discharged and replaced by a mortgage owing to a second company ("409668") owned by Ramos. The entry made by 409688's accountant ("Mr. Mosey") on the books of 409668 was: Dr. Accounts receivable - $75,000; Cr. Amount due to shareholder - $75,000. "It was only in April, 1980, when Ramos informed Mr. Mosey that the mortgage was owned by him personally and the financial statement of 409668 was finalized, that Ramos had irrevocably made the mortgage his own. The appropriation of the mortgage occurred, therefore, in 1980."