Dividends-bankruptcy and liquidation, Financial Accounting

Assignment Help:

DIVIDENDS

Dividends must be declared and paid in accordance with the following rules:

1) The first dividend must be declared and paid within four months of the first meeting of the creditors, unless postponed with the consent of the committee of inspection;

2) Subsequent dividends must be declared and paid at intervals of not more than six months;

3) The trustee must give not more than two month's notice of intention to declare a dividend to every creditor mentioned in the statement of affairs who has not proved his debt, requiring proof to be lodged not later than a date at least 14 days from the date of the notice; he must admit or reject all proofs within 14 days of the date specified; appeal against rejection must be commenced within seven days; the trustee must have the notice gazetted;

4) After declaring a dividend, details thereof must be sent to every creditor who has proved and must be gazetted;

5) The trustee must make provision for creditors who have not had time to submit proofs, or to establish disputed claims, and for the expenses of administration;

6) A creditor who has not proved before declaration of a dividend may be paid if the trustee has any money still in his hands, and may participate in future dividends;

7) If a dividend is paid on a future debt, a rebate of interest at 6% per annum from the date of the dividend to the date for payment of the debt must be deducted;

8) A final dividend may be declared when all the bankrupt's property has been realised, or so much of it as can be realised without needlessly protracting the trusteeship; notice must be given to persons who have notified, but have not established, their claims, requiring them to do so within the time specified in the notice;

9) Unclaimed dividends remaining in the hands of the trustee for six months must be paid into the Bankruptcy Estates Account; the receipt of the Official Receiver discharges the trustee in respect thereof, any claimant must apply to the Official Receiver for payment.


Related Discussions:- Dividends-bankruptcy and liquidation

What is the sampling unit, What is the objective of performing this test? W...

What is the objective of performing this test? What is the sampling unit? What is the population? These are the questions I am confused on the sampling and population I have som

Explain about material event, Q. Explain about Material event? Subseque...

Q. Explain about Material event? Subsequent Event - Material event which takes place after the end of accounting period and before the publication of an entity's FINANCIAL STAT

Mortgage, Ask questiJohn’s away at the moment, and his email provider has a...

Ask questiJohn’s away at the moment, and his email provider has a size limit on the data that can be sent via email. What is a potential solution for John, and name a provider that

Cst , how to account cst collected

how to account cst collected

Internal and external analysis on accounting, Write at least 7 full pages t...

Write at least 7 full pages that analyzes the internal and external environments for your organization. This paper must be in essay form. [If you have formatting questions, refer t

Condition of joint return, Surviving Spouse - This is a person whose wife o...

Surviving Spouse - This is a person whose wife or husband died during tax year. A surviving spouse can file a JOINT RETURN for the year in which death occurred. Additionally a join

Absorption costing, Absorption costing is a cost accounting method that ...

Absorption costing is a cost accounting method that tries to charge all direct costs and all production costs of an organization to specific units of pr

HELP!!, Calculate the DuPont Model, given the following information: cash=$...

Calculate the DuPont Model, given the following information: cash=$16,080; accounts receivable= $9,500; prepaid = $3,150; supplies =$675; equipment =$25,200; accumulated depreciati

What is reporting currency, 1. What accounting firm performed the audit of ...

1. What accounting firm performed the audit of Zetar's financial statement? 2. What is the address of the company's corporate headquarters? 3. What is the company's reporting

LO9-1, Adger corporation is a service company that measures its output base...

Adger corporation is a service company that measures its output base on the number of customers serviced. The company provided the following fixed and variable cost estimates that

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd