Liquidation Account liabilities Flashcards
Liabilities consist of ?
- Administration expenses
- Claims against the estate
What are the two types of advertisements required? What do they cost? Where are you also required to publish?
- Sec 29 Advertisement (creditors)
Government Gazette R37.82 - Sec 35 Advertisement (account
open for inspection)
Government Gazette 37.82 - Local and/or national newspaper
What are the two types of bank charges?
- normal bank charges on estate bank account
- provision further bank charges on estate bank account
What is the amount charged for postages and petties?
260
What are the various types of valuation?
- appraiser
- stockbroker
- auditor
What kind of bond is included in the liability section of the LandD
Security Bond
When would you account for realisation costs?
If the estate agents,auctioneer, or stockbrocker realised an asset to cash
When would you account for transfer costs?
When immovable property is to be transferred to an heir
incl attorneys name
Not applicable when IP sold b/c buyer would pay
Cancellation of bond costs?
Record as:
Cancellation of bond costs
mortgage bond registered
How do you calculate the Master’s fees?
- A minimum of R600 for all estates valued from R250 001.00 up to R400 000.00
- An additional R200 for every R100 000.00 above R400 0000.00
- A maximum of R7000.
How do you calculate executor remuneration?
3,5% on (Gross value of Assets)
Vat @ 15% on the above if registered
What are the various types of claims against the estate?
There are 9
- Funeral expenses
- mortgage bond registered over immmovable property
- Maintenance claims
- Loan to the deceased
- Accrual claim where surviviing spouse’s accrual is less
- SARS income tax assesment
- Capital gains tax
- Overdraft
- Amount owing to any creditor
On point 2 Interest accrued after date of death will be recorded as expenditure in the Income and Expenditure Account
On point 3 A loan by the deceased to another is a claim in favour
What are the various types of administration expenses?
There are 12
- section 29
- section 35
- local/national newspaper
- provision bank charges + bank charges
- postages and petties
- valuation costs (Appraiser, stockbrocker, auditor)
- security bond
- cost of realisation
- transfer costs
- cancellation of bond costs
- master’s fees
- executor’s remuneration