1. How does the insolvency of a partnership firm differ from the insolvency of an individual? 2. What do you mean by preferential creditors? 3. The provincial Insolvency Act of 1920 is applicable to :
A individuals only
B individuals, firms and limited company
C individuals, firms and hindu undivided family.
4. Official receiver is appointed by the
A the chief justice of India
B the insolvency court
C none of the above.
5. All debts due to government or local authority are treated as :
A secured creditors
B unsecured creditors
C preferential creditors.
6. Charges for electric light, gas and telephone :
A are not treated as preferential creditors
B are treated as preferential creditors
C are treated as secured creditors.
6. Prepare Statement of Affairs and Deficiency Account of Mr. Gambler as at 31st December, 2014. (all figures in Rs.
On 1st January 2012 he commenced business with a capital of Rs.10,000. His profits for 2012 and 2013 amounted to Rs.5,000. He suffered a loss of Rs. 4,000 in 2014. He lost Rs. 10,000 in speculation. His drawings amounted to Rs. 8,000.