The opening entries-executorship laws and accounts, Financial Accounting

The opening entries

1. Assets of the estate or trust
In both cases the various assets of the estate or trust are debited to appropriate accounts and credited to the Estate Capital Account;

The value at which assets are introduced is as follows:—

a) In the case of an estate or a trust following an estate — probate value;
b) In the case of an inter vivos settlement — market value at the date of the settlement.

2. Liabilities of the estate or trust
The various liabilities of the estate or trust are credited to appropriate accounts  and debited to the Estate Capital Account.

3. Balance on Estate Capital Account
The balance on the capital account of an estate will represent the net value of the deceased's estate. When Estate Duty used to be charged in Kenya, the balance on the estate capital account was the figure on which Estate Duty was charged, subject to adjustments (in exactly the same way as Income Tax is charged on the net profit of a business, subject to adjustments).

Posted Date: 12/13/2012 5:15:50 AM | Location : United States







Related Discussions:- The opening entries-executorship laws and accounts, Assignment Help, Ask Question on The opening entries-executorship laws and accounts, Get Answer, Expert's Help, The opening entries-executorship laws and accounts Discussions

Write discussion on The opening entries-executorship laws and accounts
Your posts are moderated
Related Questions
I would like you to take the second set of data from session 8 (the one you worked with in the first participation exercise) and do the following: 1.  Determine the number of gr

what is the process to complete my debtor management project.

The Major Assignment Business Case Study is about American Cable Communications' proposed acquisition of the firm Air Thread Connections. The case study is available from the folde

1. Ben lost his job when his employer moved its plant. During the year, he collected unemployment benefits for three months, a total of $1,800. While he was waiting to hear from pr

Day Corporation purchased a patent on January 1, 2012 for $360,000. The patent had a useful life of 10 years at that date. In January of 2013, Day successfully defends the patent a

Chambers plc imports household equipment from Germany. On 1 July 2011, the company acquired 60% of the ordinary shares of Court Ltd, which owns a chain of retail shops selling hous

Calculate the market value of Renowned Cola''s debt at year-end 2005. What is the book value of debt? Why do usually use market or book values for debt? Explain.

During the fourth quarter of 2006, Cablevision, Inc., generated excess cash, which the company invested in securities, as follows: On Nov. 12 purchased 1,000 shares of common st

Q. What do you mean by Auditors Report? Auditors' Report - Written communication issued by an independent CERTIFIED PUBLIC ACCOUNTANT (CPA) describing the character of her or h

a,b,c carried on business and their profit and loss ratio 3:4:5.they decided dissolve the partnership as on 1st july,2011.the following balance sheet..... creditors-10000 loan A/c-