This is achieved by amending the status of some creditors' claims - making them effectively
pre-preferential.
For example, under Spanish law, claims of an administrative and labour-related nature are not
automatically suspended on the date of the declaration of the bankruptcy. Under Polish law,
secured creditors with rights in rem may enforce their claims against encumbered assets in an
arrangement bankruptcy (the claims are not covered by the arrangement proceedings to the
extent they are covered by security) and initiate enforcement proceedings. In some EU
Member States, the court has the power to lift the stay. Under Swedish law, upon the issuing of a bankruptcy order, a landlord is entitled to terminate the debtor's lease. If commercial
premises are involved and the bankruptcy administrator fails to assume liability for the
tenant's obligations during the term of the relevant lease within one month from demand, the
landlord may repossess the premises. Under German law, the security interest and ownership
interest of creditors with rights to preferential treatment may only be realized after the
Creditors' Report Meeting has been held. If after the Creditors' Report Meeting, the insolvency
administrator decides to use the property for the insolvency estate, he must pay a
rent/interest to those creditors with a security interest in the insolvency estate. In the UK,
amounts becoming due under a lease during the period that an administrator is in beneficial
occupation are expenses of the estate.
creditors journal
creditors have debit balances as advances receive from creditors..........
duties of a creditors clerk
Purchases A/c -Dr 5000 To Sundry Creditors 5000
When company purchases materials from different vendors on credit, those combined creditors are called sundry creditors.
creditors journal
creditors' circulization
creditors have debit balances as advances receive from creditors..........
duties of a creditors clerk
Why a business have creditors
Average Creditors / Credit purchases = '?' x 360 = '?' ex. Average Creditors / Credit purchases = 50 000 / 120 000 x 360 = 0.4166 x 360 = 41.7 (average creditors = Creditors at the biginning of the year + creditors at the end of the year divided by 2) Average Creditors / Credit purchases = '?' x 360 = '?' ex. Average Creditors / Credit purchases = 50 000 / 120 000 x 360 = 0.4166 x 360 = 41.7 (average creditors = Creditors at the biginning of the year + creditors at the end of the year divided by 2)
You can get a list of your creditors by checking your credit report. Most of all creditors will report to the agencies and will have a record.
Purchases A/c -Dr 5000 To Sundry Creditors 5000
When amount from more than one small creditors are join and shown together it is called sundry creditors.
When company purchases materials from different vendors on credit, those combined creditors are called sundry creditors.
Debit expensesCredit sundry creditors
if the creditors are not paid in time.