{"id":59238,"date":"2024-04-16T01:33:39","date_gmt":"2024-04-16T01:33:39","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=59238"},"modified":"2024-04-16T01:33:39","modified_gmt":"2024-04-16T01:33:39","slug":"in-case-of-dissolution-of-a-firm-in-which-order-the-following-creditors-should-be-paid-1-creditors-having-floating-charge-on-the-assets-of-the-firm-2-remuneration-of-liquidator-3-provident-fund-m","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/in-case-of-dissolution-of-a-firm-in-which-order-the-following-creditors-should-be-paid-1-creditors-having-floating-charge-on-the-assets-of-the-firm-2-remuneration-of-liquidator-3-provident-fund-m\/","title":{"rendered":"In case of dissolution of a firm, in which order the following creditors should be paid? 1. Creditors having floating charge on the assets of the firm 2. Remuneration of liquidator 3. Provident fund money payable to employees 4. Bank overdraft"},"content":{"rendered":"<p>\r\n    <!-- Check if it's an AMP page -->\r\n            <!-- Non-AMP version -->\r\n        <div class=\"mcq-container\" data-quiz-id=\"quizState_6a979116984ae\">\r\n                                            <div class=\"option\" data-option-key=\"option1\" data-is-correct=\"false\">\r\n                    1, 2, 3, 4                <\/div>\r\n                                            <div class=\"option\" data-option-key=\"option2\" data-is-correct=\"false\">\r\n                    1, 3, 4, 2                <\/div>\r\n                                            <div class=\"option\" data-option-key=\"option3\" data-is-correct=\"false\">\r\n                    2, 3, 4, 1                <\/div>\r\n                                            <div class=\"option\" data-option-key=\"option4\" data-is-correct=\"true\">\r\n                    2, 3, 1, 4                <\/div>\r\n                            \r\n            <!-- Feedback messages for non-AMP -->\r\n            <div class=\"feedback\" data-feedback=\"wrong\">Answer is Right!<\/div>\r\n            <div class=\"feedback\" data-feedback=\"right\">Answer is Wrong!<\/div>\r\n        <\/div>\r\n\r\n        <script>\r\n        document.addEventListener('DOMContentLoaded', function () {\r\n            var containers = document.querySelectorAll('.mcq-container');\r\n\r\n            containers.forEach(function(container) {\r\n                var options = container.querySelectorAll('.option');\r\n                var feedbackSelect = container.querySelector('[data-feedback=\"select\"]');\r\n                var feedbackWrong = container.querySelector('[data-feedback=\"wrong\"]');\r\n                var feedbackRight = container.querySelector('[data-feedback=\"right\"]');\r\n\r\n                options.forEach(function(option) {\r\n                    option.addEventListener('click', function() {\r\n                        var selectedOption = option.getAttribute('data-option-key');\r\n                        var isCorrect = option.getAttribute('data-is-correct') === 'true';\r\n\r\n                        \/\/ Remove previous selections\r\n                        options.forEach(function(opt) {\r\n                            opt.classList.remove('correct', 'incorrect');\r\n                        });\r\n\r\n                        \/\/ Add the correct\/incorrect class\r\n                        if (isCorrect) {\r\n                            option.classList.add('correct');\r\n                            feedbackRight.hidden = false;\r\n                            feedbackWrong.hidden = true;\r\n                        } else {\r\n                            option.classList.add('incorrect');\r\n                            feedbackRight.hidden = true;\r\n                            feedbackWrong.hidden = false;\r\n                        }\r\n\r\n                        \/\/ Hide select feedback\r\n                        feedbackSelect.hidden = true;\r\n                    });\r\n                });\r\n            });\r\n        });\r\n        <\/script>\r\n    \r\n    <!--more--><\/p>\n<p>The correct answer is D. 2, 3, 1, 4.<\/p>\n<p>In case of dissolution of a firm, the following creditors should be paid in the following order:<\/p>\n<ol>\n<li>Creditors having a fixed charge on the assets of the firm.<\/li>\n<li>Creditors having a floating charge on the assets of the firm.<\/li>\n<li>Preferential creditors, such as employees, employees&#8217; provident fund, income tax, sales tax, etc.<\/li>\n<li>Ordinary creditors.<\/li>\n<\/ol>\n<p>The remuneration of the liquidator is paid out of the assets of the firm after all the creditors have been paid.<\/p>\n<p>Here is a brief explanation of each option:<\/p>\n<p>Option 1: 1, 2, 3, 4<\/p>\n<p>This option is incorrect because it does not follow the order of priority of payment of creditors in case of dissolution of a firm. The correct order is as follows:<\/p>\n<ol>\n<li>Creditors having a fixed charge on the assets of the firm.<\/li>\n<li>Creditors having a floating charge on the assets of the firm.<\/li>\n<li>Preferential creditors, such as employees, employees&#8217; provident fund, income tax, sales tax, etc.<\/li>\n<li>Ordinary creditors.<\/li>\n<\/ol>\n<p>Option 2: 1, 3, 4, 2<\/p>\n<p>This option is incorrect because it does not follow the order of priority of payment of creditors in case of dissolution of a firm. The correct order is as <div class=\"youtube-subscribe-container\">\r\n        <a href=\"https:\/\/www.youtube.com\/channel\/UCNHT8lW-JmLC68rjBfZhdkg?sub_confirmation=1\" target=\"_blank\" class=\"youtube-subscribe-button\">\r\n            <span class=\"youtube-icon\">\r\n                <svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 576 512\">\r\n                    <path d=\"M549.7 124.1c-6.3-23.7-24.8-42.3-48.3-48.6C458.8 64 288 64 288 64S117.2 64 74.6 75.5c-23.5 6.3-42 24.9-48.3 48.6-11.4 42.9-11.4 132.3-11.4 132.3s0 89.4 11.4 132.3c6.3 23.7 24.8 41.5 48.3 47.8C117.2 448 288 448 288 448s170.8 0 213.4-11.5c23.5-6.3 42-24.2 48.3-47.8 11.4-42.9 11.4-132.3 11.4-132.3s0-89.4-11.4-132.3zm-317.5 213.5V175.2l142.7 81.2-142.7 81.2z\"\/>\r\n                <\/svg>\r\n            <\/span>\r\n            Subscribe on YouTube\r\n       <div class=\"telegram-channel-container\">\r\n        <a href=\"https:\/\/t.me\/pscnotes2025\" target=\"_blank\" class=\"telegram-channel-button\">\r\n            <span class=\"telegram-icon\">\r\n                <svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 496 512\">\r\n                    <path fill=\"white\" d=\"M248,8C111,8,0,119,0,256s111,248,248,248s248-111,248-248S385,8,248,8z M362,177L320,367c-3,14-10,18-20,14l-56-41l-27,26 c-3,3-5,5-10,5l4-63L323,196c5-5-1-7-8-3l-98,62l-42-13c-9-3-10-9,2-14l162-63C351,160,365,164,362,177z\"\/>\r\n                <\/svg>\r\n            <\/span>\r\n            Join Our Telegram Channel\r\n        <\/a>\r\n    <\/div>  <\/a>\r\n    <\/div> follows:<\/p>\n<ol>\n<li>Creditors having a fixed charge on the assets of the firm.<\/li>\n<li>Creditors having a floating charge on the assets of the firm.<\/li>\n<li>Preferential creditors, such as employees, employees&#8217; provident fund, income tax, sales tax, etc.<\/li>\n<li>Ordinary creditors.<\/li>\n<\/ol>\n<p>Option 3: 2, 3, 4, 1<\/p>\n<p>This option is incorrect because it does not follow the order of priority of payment of creditors in case of dissolution of a firm. The correct order is as follows:<\/p>\n<ol>\n<li>Creditors having a fixed charge on the assets of the firm.<\/li>\n<li>Creditors having a floating charge on the assets of the firm.<\/li>\n<li>Preferential creditors, such as employees, employees&#8217; provident fund, income tax, sales tax, etc.<\/li>\n<li>Ordinary creditors.<\/li>\n<\/ol>\n<p>Option 4: 2, 3, 1, 4<\/p>\n<p>This option is correct because it follows the order of priority of payment of creditors in case of dissolution of a firm. The correct order is as follows:<\/p>\n<ol>\n<li>Creditors having a fixed charge on the assets of the firm.<\/li>\n<li>Creditors having a floating charge on the assets of the firm.<\/li>\n<li>Preferential creditors, such as employees, employees&#8217; provident fund, income tax, sales tax, etc.<\/li>\n<li>Ordinary creditors.<\/li>\n<\/ol>\n","protected":false},"excerpt":{"rendered":"<p>Join Our Telegram Channel Subscribe on YouTube<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[85],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.2 (Yoast SEO v23.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>In case of dissolution of a firm, in which order the following creditors should be paid? 1. Creditors having floating charge on the assets of the firm 2. Remuneration of liquidator 3. Provident fund money payable to employees 4. Bank overdraft<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/exam.pscnotes.com\/mcq\/in-case-of-dissolution-of-a-firm-in-which-order-the-following-creditors-should-be-paid-1-creditors-having-floating-charge-on-the-assets-of-the-firm-2-remuneration-of-liquidator-3-provident-fund-m\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"In case of dissolution of a firm, in which order the following creditors should be paid? 1. Creditors having floating charge on the assets of the firm 2. Remuneration of liquidator 3. Provident fund money payable to employees 4. Bank overdraft\" \/>\n<meta property=\"og:description\" content=\"Join Our Telegram Channel Subscribe on YouTube\" \/>\n<meta property=\"og:url\" content=\"https:\/\/exam.pscnotes.com\/mcq\/in-case-of-dissolution-of-a-firm-in-which-order-the-following-creditors-should-be-paid-1-creditors-having-floating-charge-on-the-assets-of-the-firm-2-remuneration-of-liquidator-3-provident-fund-m\/\" \/>\n<meta property=\"og:site_name\" content=\"MCQ and Quiz for Exams\" \/>\n<meta property=\"article:published_time\" content=\"2024-04-16T01:33:39+00:00\" \/>\n<meta name=\"author\" content=\"rawan239\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"rawan239\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"In case of dissolution of a firm, in which order the following creditors should be paid? 1. Creditors having floating charge on the assets of the firm 2. Remuneration of liquidator 3. Provident fund money payable to employees 4. Bank overdraft","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/exam.pscnotes.com\/mcq\/in-case-of-dissolution-of-a-firm-in-which-order-the-following-creditors-should-be-paid-1-creditors-having-floating-charge-on-the-assets-of-the-firm-2-remuneration-of-liquidator-3-provident-fund-m\/","og_locale":"en_US","og_type":"article","og_title":"In case of dissolution of a firm, in which order the following creditors should be paid? 1. Creditors having floating charge on the assets of the firm 2. Remuneration of liquidator 3. Provident fund money payable to employees 4. Bank overdraft","og_description":"Join Our Telegram Channel Subscribe on YouTube","og_url":"https:\/\/exam.pscnotes.com\/mcq\/in-case-of-dissolution-of-a-firm-in-which-order-the-following-creditors-should-be-paid-1-creditors-having-floating-charge-on-the-assets-of-the-firm-2-remuneration-of-liquidator-3-provident-fund-m\/","og_site_name":"MCQ and Quiz for Exams","article_published_time":"2024-04-16T01:33:39+00:00","author":"rawan239","twitter_card":"summary_large_image","twitter_misc":{"Written by":"rawan239","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/exam.pscnotes.com\/mcq\/in-case-of-dissolution-of-a-firm-in-which-order-the-following-creditors-should-be-paid-1-creditors-having-floating-charge-on-the-assets-of-the-firm-2-remuneration-of-liquidator-3-provident-fund-m\/","url":"https:\/\/exam.pscnotes.com\/mcq\/in-case-of-dissolution-of-a-firm-in-which-order-the-following-creditors-should-be-paid-1-creditors-having-floating-charge-on-the-assets-of-the-firm-2-remuneration-of-liquidator-3-provident-fund-m\/","name":"In case of dissolution of a firm, in which order the following creditors should be paid? 1. Creditors having floating charge on the assets of the firm 2. Remuneration of liquidator 3. Provident fund money payable to employees 4. Bank overdraft","isPartOf":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/#website"},"datePublished":"2024-04-16T01:33:39+00:00","dateModified":"2024-04-16T01:33:39+00:00","author":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/5807dafeb27d2ec82344d6cbd6c3d209"},"breadcrumb":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/in-case-of-dissolution-of-a-firm-in-which-order-the-following-creditors-should-be-paid-1-creditors-having-floating-charge-on-the-assets-of-the-firm-2-remuneration-of-liquidator-3-provident-fund-m\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/exam.pscnotes.com\/mcq\/in-case-of-dissolution-of-a-firm-in-which-order-the-following-creditors-should-be-paid-1-creditors-having-floating-charge-on-the-assets-of-the-firm-2-remuneration-of-liquidator-3-provident-fund-m\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/exam.pscnotes.com\/mcq\/in-case-of-dissolution-of-a-firm-in-which-order-the-following-creditors-should-be-paid-1-creditors-having-floating-charge-on-the-assets-of-the-firm-2-remuneration-of-liquidator-3-provident-fund-m\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/exam.pscnotes.com\/mcq\/"},{"@type":"ListItem","position":2,"name":"mcq","item":"https:\/\/exam.pscnotes.com\/mcq\/category\/mcq\/"},{"@type":"ListItem","position":3,"name":"accounting","item":"https:\/\/exam.pscnotes.com\/mcq\/category\/mcq\/accounting\/"},{"@type":"ListItem","position":4,"name":"In case of dissolution of a firm, in which order the following creditors should be paid? 1. Creditors having floating charge on the assets of the firm 2. Remuneration of liquidator 3. Provident fund money payable to employees 4. Bank overdraft"}]},{"@type":"WebSite","@id":"https:\/\/exam.pscnotes.com\/mcq\/#website","url":"https:\/\/exam.pscnotes.com\/mcq\/","name":"MCQ and Quiz for Exams","description":"","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/exam.pscnotes.com\/mcq\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/5807dafeb27d2ec82344d6cbd6c3d209","name":"rawan239","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/d97f17072bfa490596c8f78363955d55?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/d97f17072bfa490596c8f78363955d55?s=96&d=mm&r=g","caption":"rawan239"},"sameAs":["https:\/\/exam.pscnotes.com"],"url":"https:\/\/exam.pscnotes.com\/mcq\/author\/rawan239\/"}]}},"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/posts\/59238"}],"collection":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/comments?post=59238"}],"version-history":[{"count":0,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/posts\/59238\/revisions"}],"wp:attachment":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/media?parent=59238"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/categories?post=59238"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/tags?post=59238"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}