Government dues that arose within 12months before the date of winding up is treated as ???
Answers
Government dues that arose within 12 months before the date of winding up are treated as Preferential Creditor.
#SPJ3
Government dues that arose within 12months before the date of winding up is treated as ???
(a) Secured creditor (b) Over-riding preferential creditor
(c) Preferential creditor (d) Unsecured creditor
The correct answer :
(c) Preferential creditor
Explanation :
Government dues that arose within 12months before the date of winding up is treated as 'Preferential creditor.'
A preferential creditor is a person or organisation that has priority in paying money that is to be owed by a bank or financial institution.
If a person or organisation is declared insolvent, priority is given by the debtor in receiving the outstanding payment from that person or organisation. Declaring a person or organisation as insolvent does not mean that he will no longer have to repay the debt. He has to be responsible for repaying the loan.
The financial institution, whether it is a bank or any other financial institution, gives priority to recovery of dues from him and he finds all avenues so that maximum recovery can be done from the creditor. Financial institutions try their best to recover as much as possible.
#SPJ3
——————————————————————————————————————
Know something more :
https://brainly.in/question/16725567
Which of the following has a credit balance?
a) Carriage inwards
b) Carriage outwards
c) Discount received
d) Discount allowed
https://brainly.in/question/38128618
capital account balance is a ____ balance?