Investment with ex. div. quotation-executorship laws, Financial Accounting

Investment with ex. div. quotation

Investment with ex. div. quotation will be debited to the investment account at its ex. div. value. The full impending dividend will also be debited to the Investment Account. When the dividend is subsequently received it is apportioned in the same way as a) above.  A journal transfer is then made from the Capital column of the Investment Account to the debit of the Estates Capital Account in order to restore the book value of the investment to its probate (quarter—up) value.

 

Exanple                         Date of Death:              30th June, 20X5

 

                                          Stock:                        3% Kenya Stock

                                       Interest paid:                 31st January

                                                                           31st July

                                       Holding:                       Shs 6m quoted at 86—88 ex.div.

 

                                                             Investment Account

                        Nominal     Income      Capital                           Nominal     Income      Capital

20X5                     Sh'000       Sh'000       Sh'000                               Sh'000       Sh'000       Sh'000

 

June      Estate                                                      July       Estate

30         Capital                                                     31         Cash

            Account                                                              Book

            (stock                                                                  (interest

              at                                                                      pre-

            death)          6,000                          5,190               death                                                75

                                                                                       post-death                        15

 

            (interest                                                   July       Estate Capital

             due)                                                 90   31         Account

                                                                                                                                               15

 

Posted Date: 12/13/2012 5:22:58 AM | Location : United States







Related Discussions:- Investment with ex. div. quotation-executorship laws, Assignment Help, Ask Question on Investment with ex. div. quotation-executorship laws, Get Answer, Expert's Help, Investment with ex. div. quotation-executorship laws Discussions

Write discussion on Investment with ex. div. quotation-executorship laws
Your posts are moderated
Related Questions
Q. Lack of assets available to offer as collateral or security? If SMEs wish to access bank finance for instance, then banks will wish to address the information problem referr

Q. Determine Annual effective cost? (i) Payables policy One month cost of taking extended trade credit = 1.5/98.5 = 1.52% Annual effective cost = 1.015212-1 = 19.8%

I have this assignment. Is there a cost associated for help?

Internal audit department and financial statements, Financial Accounting

Personal Financial Specialist (PFS) - CERTIFIED PUBLIC ACCOUNTANT who specializes in PERSONAL FINANCIAL PLANNING and completes a series of requirements which compriseexperience, ed

difference between carriage inwards and carriage out wards

In the current year, Madison Corporation had $50,000 of taxable income at a tax rate of 25%. During the year, Madison began offering warranties on its products and has a warranty l

Simon Corporation's bonds have 12 years left over to maturity. Interest is paid yearly, the bonds have a $1,000 par value, and the coupon interest rate is 11.5%. The bonds have a y

Business start up accounting transactions: Jane Whitfield, a sole proprietor, established the JW Flower Shop on January 2, 2010. The following transactions have occurred during

AMALGAMATIONS Two sole traders and a partnership,two or more partnerships or a sole trader and other partnerships may combine or join together to forma a single partnership. The