1. . A company being a creation of law cannot die a natural death. It comes to an end by law through the
process of liquidation. True
2. . Voluntary winding up:
3. a. If period fixed for the company is expired. b. If company passes a special resolution the
company wound up voluntarily. c. Members voluntary winding up is applicable to solvent
companies only. d. All of the above
4. Compulsory winding up: a. If a company unable to pay its debt b. If the number of members
of company reduced below statutory limit. c. If a company does commence its business within
a year from its incorporation. d. All of the above.
5. If a company makes a default in delivering the statutory report to the registrar or in holding
the statutory meeting, then company is compulsorily wound up by the
court. True
6. Creditors voluntary winding up applies to insolvent
companies. True
7. Liquidator is appointed by
Court In case of compulsory
winding up
Members Members voluntarily winding
up
Creditors and Members In case of creditors
voluntarily winding up
8. Liquidator of the company is responsible for realisation of assets and distibute the proceeds
amongst the right claimants. True
9. The first item in order of payment to be made by liquidator is:---- Liquidation expenses
10. Liquidator’s statement of receipts and payment is know as:--------- Liquidator’s final
statement of account
11. contibutory is-------. A shareholder
12. Present members are included in “A” list of contributories. True
13. The holder of fully paid shares are also treated as contributories even though they are not to
contribute to the assets of the company. True
14. Past members are included in “B” list of contributories. True
15. A past member is not liable to contribute:-------a. In respect of any liability contracted after
he ceased to be member of the company. b. One year passed since he ceased to be a
member. c. In case of company limited by shares, no liability arises if shares are fully paid
up. d. All of the above
16. Correct order of payment:---------------------a. Liquidation expenses---b. ----- Secured
creditors
17. c. Preferential creditors-d. Unsecured creditors-----e. Any surplus, among
the contributories
18. Preference shareholders are legally entitled to the repayment of capital in the event of
liquidation of the company. False
19. The liquidator has a legal right of forfeiting the shares of those who fail to pay the amount
due. True
20. Interest on liabilities is to be paid upto the date of actual payment in case of solvent
companies and upto date of commencement of insolvency in case of insolvent
company. True
21. . A creditor for Rs. 10000 holding a charge on the stock of the book value Rs. 12000 (Market
value Rs. 8000) is called Partly secured creditors.
22. Calls in advance on shares have priority over payment of paid up share capital of that
class. True
23. . All revenue, taxes due to government within 12 months before the date of commencement
of winding up is preferential. True
24. Salaries due to director, manager, secretary etc. are preferential. False
25. Salaries due to clerk is preferential for a period not exceeding:--------- Four months
26. Maximum ___________ can be treated as preferential salary and wages.----------- 20000
27. Amount due to workman is rank with secured creditors in the event of liquidation of the
company. True
28. Workman means any person employed in any skilled or unskilled, manual, supervisory(wages
less than 1600 p.m.), technical work. True
29. Share allotment account is a ------------------.personal account
30. Holders of preference shares will have a right to vote if the dividend remains in arrears for a
period not less than----------2 year
