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

Accounts required and their purpose-branches, Accounts required and their p...

Accounts required and their purpose a. Branch Current Account (Head Office Books) Records all transactions branch and head office; The balance represents the investmen

Amalgamation of partnership, Please I need assistance with steps to prepare...

Please I need assistance with steps to prepare amalgamation

Net realizable value of the accounts receivable, After the accounts are adj...

After the accounts are adjusted at the end of the year, Accounts Receivable has a balance of $215,000, Uncollectible Accounts Expense has a balance of $17,500, and Allowance for Do

Determine the price of stock and profit, First's current stock price is $26...

First's current stock price is $260. The price may rise to $300 or fall to $170 in one month. The risk-free interest rate is 18% per year. a. Using the replication portfolio app

Limitations of the five year period of analysis, Q. Limitations of the five...

Q. Limitations of the five year period of analysis? A number of restrictions to the analysis potentially arise - The approach doesn't take account of future benefits/costs a

Record these transactions in the accounting equation, March and has already...

March and has already accumulated $30,000 in manufacturing costs, Job B and order for 10,000silver medallions, was not started until April. Transactions for these jobs are the foll

Deeds of arrangement-bankruptcy and liquidation, DEEDS OF ARRANGEMENT (D of...

DEEDS OF ARRANGEMENT (D of A) 1. Nature of a D of A : To avoid the expense and delay involved in a bankruptcy, a debtor in trouble may make a private arrangement with the

How the following situations should be reported, You have just started work...

You have just started work for Warren Co. as part of the controller's group involved in current financial reporting problems. Jane Henshaw, controller for Warren, is interested in

What would be the consequences to zorn, zorn conducted his professional pra...

zorn conducted his professional practice through zorn, inc. the corporation uses a fiscal year ending september 30 even though the business purpose test for a fiscal year cannot be

Case study, It is the month of april for rand company a producer of gold an...

It is the month of april for rand company a producer of gold and silver commemorative medallions. Rand company has one job, job A a special minting of 1000 gold medallions which st

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