Amount of retirement benefits of employees exceeding Rs.20,000 per employees is treated as____________

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Preferential creditors are those who have a priority over other creditors in the event of a company's insolvency. This means that they will be paid before other creditors, such as unsecured creditors. Retirement benefits are considered to be preferential creditors because they are a form of compensation for work that has already been performed.

Amount of Retirement Benefits of Employees Exceeding Rs