Liquidation of Companies MCQ’s | Financial Accounting (Free Resource)

21. Preferential creditors are shown in the statement of affairs under :
(a) List D
(b) List B
(c) List C
(d) List A

22. The proceeds of assets not specifically pledged and the surplus of the assets specifically pledged is first available for :
(a) Preferential creditors
(b) Unsecured creditors
(c) Legal charges, liquidator’s remuneration and liquidation expenses
(d) Preference shareholders

23. Any sum due to an employee out of provident fund is an example of :
(a) Unsecured creditor
(b) Preferential creditor
(c) Secured creditor
(d) Partly secured creditor

24. Bills were discounted to the extent of  Rs 10,000 of which bills of Rs 4,000 are likely to be dishonoured. Hence, the liability to rank in respect of these bills will be
(a) Rs 10,000
(b) Rs 4,000
(c) Rs 6,000
(d) Rs 14,000

25. When the sale proceeds of pledged security is not sufficient to pay off secured creditors fully, the balance due to them should be added to
(a) Unsecured creditors
(b) Preferential creditors
(c) Equity share capital
(d) Preference share capital

26. When the liquidated company has adequate cash to pay off all liabilities, the interest on liabilities should be paid :
(a) upto date of commencement of insolvency proceedings
(b) upto the date of actual payment of liabilities
(c) upto the date of payment to shareholders
(d) none of these

Answer: 21)List C 22)Legal charges, liquidator’s remuneration and liquidation expenses 23)Preferential creditor 24)Rs 4,000 25)Unsecured creditors 26)upto the date of actual payment of liabilities

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