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

Assignment Help:

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

 


Related Discussions:- Investment with ex. div. quotation-executorship laws

Discuss the theoretical determinants , i.   Explain carefully what is meant...

i.   Explain carefully what is meant by a price earnings ratio. ii   Utilising a valuation model identify and briefly discuss the theoretical determinants of the ratio. iii

#title, A company produces 2 modules of mobile phones. 1.Basic modle is sol...

A company produces 2 modules of mobile phones. 1.Basic modle is sold 5000/=, direct material cost 1250/=, requires 0.25h labour time. Produce unites 8000 per month. 2.smart model

Prepare the necessary journal entries in 2013, Berg Company adopted a stock...

Berg Company adopted a stock-option plan on November 30, 2013, that provided that 73,200 shares of $5 par value stock be designated as available for the granting of options to offi

Example on lenders evaluation, Table on subsequent page lists 21 ratios bei...

Table on subsequent page lists 21 ratios being calculated by the Bombay Stock Exchange. Tick the board class to that each of the 21 ratios belongs to the blank columns of the Table

Prepare an income statement, Tyler Smith has worked in an upholstery shop f...

Tyler Smith has worked in an upholstery shop for 10 years. Tyler's wages were $20,000. Lately, Tyler has been unhappy with the shop's owner. Convinced that he could run an upholste

Deferred tax-income tax-financial statement, Deferred tax A company may e...

Deferred tax A company may enter into transactions in the current financial period that may result in the firm either paying or saving some tax in the future. The tax that may be

Assignment, Can you do the attacched quections by Monday?

Can you do the attacched quections by Monday?

Illustration of admission of a new partner, Illustration of Admission of a ...

Illustration of Admission of a new partner XYZ have been trading as equal partners having capital contributions of £300,000, £250,000 and £200,000 respectively.  They  agreed

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd