Question

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
bill of 40 are likely​

Answer 1

Explanation:

(b)..........................

Answer 2

Any sum due to an employee out of the provident fund is an example of a preferential creditor.

Explanation:

This is an example of a preferential creditor.

• Employees and many revenue officers are generally considered preferred creditors.
• Section 326 prescribes various sums which are payable to an employee on a priority basis, including various other dues.
• Any amount due to the employee from the Provident Fund of the Firm, or the Pension Fund, or any other fund for the betterment of the employee, is to be paid to the employee.