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
CONSOLIDATED CASHFLOW STATEMENTS (IAS 7) The basic cash flow statement has been covered under Financial Accounting II. The following introduction will serve as a quick reminder.

The discount rate used must normally reflect the weighted average cost of equity and debt taking into account the systematic risk of the investment. A company's weighted average co

Consider two individuals with endowments of 60 hours per week of leisure, nonlabour income of $Y per week, and a wage of $7.50.  At this wage assume that workers are constrained by

Half secret trusts In this type of trust the will states that the gift is on trust, but the name of the beneficiary is not specified. Since the existence of a trust is disclose

I am looking for the solutiotns to this problem. Using the information provided below, complete Aspen Ridge limited partnership%u2019s page 1 of Form 1065; complete Schedule K o

Since 1968, Dracula Limited has traded in Doncaster, South Yorkshire as a manufacturer of fancy-dress and theatrical costumes. It produces a wide range of general theatrical costum

On May 19, 2010, Kim placed in service a LIGHT VAN that cost $54,850. It is used 80% for business each year. What is the maximum cost recovery deduction available for the van in 20

Introduction to Pension funds Pension funds are normally set up to provide pension benefits to employees who have retired. The pension funds receive contributions mainly from e

content of financial statement with refrence to indian company

i. To disengage government from economic or business activities in which it has no competence or in areas where the private sector is more competent. ii. To make the enterprises a