Following are the details of various outstanding liabilities of Inefficient Ltd. which went into liquidation on 1st April, 2015: Government taxes payable: 2013-14: ₹22,000; 2014-15: ₹21,000 Electricity and water charges

Calculation of Preferential Creditors As per the provisions relating to preferential payments in liquidation (e.g., Section 327 of the Companies Act, 2013 or Section 530 of Companies Act, 1956 for Syllabus 2012), certain debts are treated as preferential. Particulars Amount (₹) (i) Govt. Taxes Payable (due and payable within 12 months before winding-up order, assuming 2014-15 tax falls within this period) 21,000 (ii) Wages of Staff 'A' for 4 months @ ₹4,000 per month (preferential up to 4 months) 16,000 (iii) Wages of Staff 'B' (preferential up to 4 months, limited to ₹20,000 per worker) 20,000 (iv) Accrued holiday remuneration of Staff 'C' 21,000 (v) Workmen Compensation to Staff 'D' 25,000 (vi) PF & Gratuity payable to Staff 'E' 30,000 (vii) Electricity and water charges payable to government (within 12 months) 20,000 Total Preferential Payment 1,53,000