Trust accounts-breach of law-trusts accounts, Financial Accounting

TRUST ACCOUNTS

(a) Object of trust accounts:

  • To demonstrate that the trust funds have been applied in accordance with the trust instrument;
  • To give details of transactions to trustees, beneficiaries and other interested parties.

 
 (b) Accountability:
The accounts of a trust should include all the property of the trust whether or not in the hands of the trustees.  For example, interests in expectancy and foreign property may not be under the trustees' control but should still be shown.

(c) Income and capital:
In many trusts different persons are entitled to the income and the capital and this necessitates a careful distinction between the two.

(d) Form of the accounts:
The accounts should be as simple as possible for the benefit of trustees and beneficiaries who are not trained in accounting. Trust accounts and supporting books and vouchers should be kept for a longer period than would be the case with commercial documents.

Posted Date: 12/15/2012 12:27:54 AM | Location : United States







Related Discussions:- Trust accounts-breach of law-trusts accounts, Assignment Help, Ask Question on Trust accounts-breach of law-trusts accounts, Get Answer, Expert's Help, Trust accounts-breach of law-trusts accounts Discussions

Write discussion on Trust accounts-breach of law-trusts accounts
Your posts are moderated
Related Questions
You have just started work for Warren Co. as part of the controller's group involved in current financial reporting problems. Jane Henshaw, controller for Warren, is interested in

you are aceo of acme ,inc located in united states .you use the discounted pay back period method and accept all projects that pay back in hree years.a project that will cost 5,500

48 Morgado Inc. has provided the following data to be used in evaluating a proposed investment project: Initial investment $130,000 Annual cash receipts $78,000 Life of th

What kinds of business ownership exist? Particular form of business ownership has significant implications for accounting purposes and so it's useful to be clear about the main

What is the objective of performing this test? What is the sampling unit? What is the population? These are the questions I am confused on the sampling and population I have som

abc limied is considering whether to invest $90000 in the purchase of a new item of equipment. The equipment would be paid for with a down-payment of $60000 and the payment of the

definition of cost of control

Completed executions A judgement creditor cannot retain the "benefit" of an execution or attachment, unless he has completed it- Before the date of the receiving order,

You have been hired as consultants to advise Mr D of DN Company limited on the performance of his company which has been  in business for two years. He has provided you with a subs

Cashflows from investing activities Involving activities involve the acquisition and disposal of non-current assets such as; property, plant and equipment, intangible assets, a