Remaining components of L and D

Question 1

What are the components of the cash recapitulation statement?

Answer 1

1. cash and assets reduced to cash - add everything in the L and D that has the divestment note CASH
2. LESS
   2(a) Liabilities
   2(b) all cash awarded in will
   2(c) Estate duty

Balance = cash surplus which goes to the residuary heir (incl details); this cash surplus is awarded to the residuary heir in the distribution account

Question 2

What are the components of the distribution account?

Answer 2

1. To award the assets.
2. See:
   2(a) divestment notes in the Liquidation Account
   2(b) the cash awards to legatees - question paper
   2(c) cash surplus in the Cash Recapitulation Statement

Starting balance = balance available for distribution as per the liquidation account (assets - liabilities)

Follow: WHY, TO WHOM, WHAT?

Question 3

What are the components of the income and expenditure account?

Answer 3

1. Income (the income after date of death) - dividends from shares, interest etc. (TOTAL Income)
2. Expenditure (the expenditure after date of death) -Executors’ remuneration: 6% on income AND VAT @ 15% on the 6% (TOTAL expenditure)
3. Balance for distribution consist of cash
   Awarded to (name and surname) (ID no …) (relation to deceased) of deceased and residuary heir

Question 4

What are the components to the Fiduciary Assets Account ?

Answer 4

• Fiduciary assets
  1. Immovable (DVD) - awarded and transferred to + relation to whom fiduciary asset is from whose estate was administered at the ____ Master of the High Court. Reference number xxxx/xx
  2. Movable property + cash (DVD
  Gross value of assets
  3. Liabilities - transfer; appraiser; etc. + executors remuneration 3.5% on value of assets VAT @ 15% on 3.5%
  Total liabilities

Balance available for distribution

• Starting balance = balance availble for distribution as per the liquidation account (assets - liabilities)
• Follow: WHY, TO WHOM, WHAT?
• LESS above liabilities