Introduction to declaring a dividend

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    Overview

    Before a dividend can be declared to a creditor, the creditor must have lodged a proof of debt detailing their claim against the Job, and have their proof admitted by the appointee.

    Secured creditors

    In the following example, the secured creditor has both fixed and floating charges.

    1.    Click Financials > Creditors.

    2.    Double-click Secured Creditors.

    3.    Double-click Barclays Bank Plc.

    4.    Select the Proof of Debt tab.

    5.    Enter the following details:

    Field

    Value

    Date

    19/07/2012

    Total

    1400000.00

    Sec. Fixed

    1200000.00

    Sec. Float

    200000.00

    6.    Click Save and Exit.

    Note

    If the proof of debt total is the same as the amount recorded for the creditor in the statement of affairs, the system will automatically populate the same amounts for the proof of debt.

    Unsecured creditors

    We will now look at entering proofs for unsecured creditors.

    In the following screenshot, a number of creditors have yet to submit a proof of debt.

    Proof1.png  

    In this exercise, we will enter proofs for 74 Solutions Limited and Attinger Jack Interactive Limited.

    1.    Double-click Unsecured Creditors.

    Tip

    You may also move from Secured to Unsecured creditors by selecting that class of creditor in the selection panel:

    Proof3.png

    2.    Double-click '74 Solutions Limited'.

    3.    Click the Proof of Debt tab and enter the following details:

    Field

    Value

    Date

    08/08/2012

    Total

    1022.25

    Total Claimed - Unsecured

    1022.25

    4.    Click Save and Exit.

    5.    Double-click 'Attinger Jack Interactive Limited'.

    6.    Click the Proof of Debt tab and enter the following details:

    Field

    Value

    Date

    10/08/2012

    Total

    3500.00

    Total Claimed - Unsecured

    3500.00

    Note

    The claim to Attinger Jack Interactive Limited represents a common position, where an invoice is being claimed by the creditor which was not put through the company’s books prior to Liquidation and therefore not included on the company’s statement of affairs.  This additional amount will be adjudicated in the next section.

    7.    Click Save and Exit.

    You will see that the claim record for Attinger Jack Interactive Limited has a short red bar against its claim, denoting that the proof is in excess of the statement of affairs figure for that creditor.

    Proof2.png

    Tip

    The coloured bar is provided a s a ‘ready reckoner’ for whether the proof claim is over (red) or under (green) the statement of affairs figure.  Additionally, the length of the red or green line is proportional to the amount the proof claim is under or over the statement of affairs figure.

    8.    Click Exit to leave the creditor screen.