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

List the various methods of determining goodwill, Question 1 Explain the f...

Question 1 Explain the five accounting concepts with an example Separate entity concept Going concern concept Money measurement concept Cost concept Dual aspect

Internal audit department and financial statements, Internal audit departme...

Internal audit department and financial statements, Financial Accounting

To observe terms of trust-trusts laws and accounts, To observe terms of tru...

To observe terms of trust   Trustees must comply with the trust instrument and the rules of equity; they need not consult the beneficiaries or take instructions from them; but the

Value of accounting information, Value of accounting information When a...

Value of accounting information When assessing value of accounting information we are confronted with similar problems. Provision of accounting information can be very expensiv

Cashflows from operating activities-group activities, Cashflows from operat...

Cashflows from operating activities  operating activities are the principle revenue generating activities of the business and examples of such cashflows include: Cash re

Trade credit, Trade credit creates accounts or debtors receivables. Trade c...

Trade credit creates accounts or debtors receivables. Trade credit is utilized as a marketing tool to expand competitive advantage over trade rivals. A firm's investment in account

#title Accounting.., The business changed their policy with regards to the ...

The business changed their policy with regards to the profit mark-upfrom 2018 to 2019 financial year. What was the changed.

P6-2b, #questioSavage Distribution markets CDs of the performing artist Lit...

#questioSavage Distribution markets CDs of the performing artist Little Sister. At the beginning of October, Savage had in beginning inventory 1,200 Sister’s CDs with a unit cost o

Prospective financial information, Prospective Financial Information (forec...

Prospective Financial Information (forecast and projection) - Forecast: Prospective financial statements which present, to the best of responsible party's knowledge and belief, an

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