Accounting · Liquidation of Companies
Consider the following statements regarding the 'Liquidation of Companies': Statement I: A liquidator's final statement of account is prepared to show the actual realization of assets and the disbursement of funds to claimants in order of priority. Statement II: Preferential creditors, such as statutory taxes due within 12 months, rank higher than debenture holders having a floating charge on the assets. Statement III: If assets are insufficient to pay unsecured creditors in full, they are paid on a pro-rata basis after settling preferential and secured claims. Which of the statements given above are correct?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Only I
- 2Only I and II
- 3Only I and III
- 4I, II and III✓
Correct answer
I, II and III
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