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Investment with cum.div. Quotation
Investment with cum.div. Quotation will be debited to the investment account at its full value. When the dividend is subsequently received it is apportioned:
The amount apportioned to capital should be transferred out of the Investment Account (thus maintaining the investment at its probate value) and credited to Estate Capital Account.
Example Date of death: 30th June, 20X5
Stock: 6% Treasury Stock
Interest paid: 1st March
30th September
Holding: Shs 2m quoted at 94-96
Nominal Income Capital Nominal Income Capital
20X5 Sh'000 Sh'000 Sh'000 20X5 Sh'000 Sh'000 Sh'000
June Estate Sept Estate
30 Capital 30 Cash
Account Book
(stock (interest
at pre-death) 30
death) 2,000 1,890
Sept post-death 30
30 Estate
Capital
Account 30
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#question.DISCUSS THE APPLICABILITY OF AN OPERATING CYCLE IN POULTRY BUSINESS.
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