In this article we will discuss about the accounting provisions regarding inter-company stocks, explained with the help of illustrations. Inter-Company Owings generally arise because of purchases and sales that are made before the amalgamation or absorption. When the vendor company has purchased goods from purchasing company it is possible that some of which remains unsold at the time of merger. [...]
In this article we will discuss about the powers and duties of a liquidator of a company. Also you will learn about the order of payment by a liquidator. Powers of Liquidator: Subject to certain legal provisions and adherence to certain procedures the powers of a liquidator are broadly enumerated as follows: (1) He can exercise the following powers only [...]
When all the liabilities are paid by the Liquidator and even then some amount remains in balance with him, he distributes this balance called surplus among the shareholders of the company. The following guidelines are as follows: (1) Surplus is to be distributed as per the provisions of the Memorandum of Association and Articles of Association. (2) If Preference shares [...]