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Pravin Co.ltd .went into liquidation on 31 March 2018 Creditors on that date comprised the following items 1)local taxes due 3000 2) sales tax 4200 3) commission due to sideman in respect of services rendered during three month of date of liquidation 9400 4) Directors fees for the year 40,000 5) Income tax 5000 6) trade creditors 8,13,200 find out preferential creditors?
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Pravin Co.ltd .went into liquidation on 31 March 2018 Creditors on tha...
Preferential Creditors in the Liquidation of Pravin Co.ltd.

Introduction: Pravin Co.ltd. went into liquidation on 31 March 2018, leaving behind a long list of creditors. The question requires us to identify the preferential creditors from the list of creditors given.

Identification of Preferential Creditors:

1. Local Taxes Due: Local taxes due are not preferential debts, and they rank equally with trade creditors.

2. Sales Tax: Sales tax is not a preferential debt, and it ranks equally with trade creditors.

3. Commission Due to Sideman: Commission due to sideman in respect of services rendered during the three months of the date of liquidation are preferential debts under Section 530 of the Companies Act, 2013. Hence, they will be paid in priority to all other debts.

4. Directors Fees: Directors fees are not preferential debts, and they rank equally with trade creditors.

5. Income Tax: Income tax is not a preferential debt, and it ranks equally with trade creditors.

6. Trade Creditors: Trade creditors are not preferential debts, and they rank equally with local taxes due and sales tax.

Conclusion: In the liquidation of Pravin Co.ltd., the preferential creditors are the commission due to sideman in respect of services rendered during the three months of the date of liquidation. They will be paid in priority to all other debts.
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Pravin Co.ltd .went into liquidation on 31 March 2018 Creditors on that date comprised the following items 1)local taxes due 3000 2) sales tax 4200 3) commission due to sideman in respect of services rendered during three month of date of liquidation 9400 4) Directors fees for the year 40,000 5) Income tax 5000 6) trade creditors 8,13,200 find out preferential creditors?
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Pravin Co.ltd .went into liquidation on 31 March 2018 Creditors on that date comprised the following items 1)local taxes due 3000 2) sales tax 4200 3) commission due to sideman in respect of services rendered during three month of date of liquidation 9400 4) Directors fees for the year 40,000 5) Income tax 5000 6) trade creditors 8,13,200 find out preferential creditors? for B Com 2024 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about Pravin Co.ltd .went into liquidation on 31 March 2018 Creditors on that date comprised the following items 1)local taxes due 3000 2) sales tax 4200 3) commission due to sideman in respect of services rendered during three month of date of liquidation 9400 4) Directors fees for the year 40,000 5) Income tax 5000 6) trade creditors 8,13,200 find out preferential creditors? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Pravin Co.ltd .went into liquidation on 31 March 2018 Creditors on that date comprised the following items 1)local taxes due 3000 2) sales tax 4200 3) commission due to sideman in respect of services rendered during three month of date of liquidation 9400 4) Directors fees for the year 40,000 5) Income tax 5000 6) trade creditors 8,13,200 find out preferential creditors?.
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