On the date of liquidation of a company, the salaries of four clerks for four months at the rates of rs 7,000 p.m. and salaries of four peons for three months at the rate of rs. 1,500 p.m. are outstanding. You are required to calculate the amount to be included in preferential creditors and creditors Hint : As per the new rule effective from March 1997. Salaries due to employee upto rs 20,000 for 4 months is treated as preferential creditors and the balance is treated as unsecured creditors
