De Mortuis Nil Nisi Bona / Being a Series of Problems in Executorship Law and Accounts

PROBLEM No. 16.

Mrs. Wiggins was the Life Tenant and Mr. Gilbert Gunter was the Remainderman of the Property left by the late Ebenezer Wiggins.

Mr. Gunter had begun to despair of ever enjoying the fruits of Mr. Wiggins' generous intentions, when, fortunately for him, on the 14th March, 1914, Mrs. Wiggins got a fish bone lodged in her gullet and died two hours later.

The Accounts had been prepared regularly on the 21st September each year, the anniversary of Mr. Wiggins' death, and the following is the Balance Sheet, dated 21st September, 1913:—

EBENEZER WIGGINS Decd.
Dr.	Balance Sheet, 21st September, 1913.				Cr.
	£	s.	d.		£	s.	d.
To Estate Account	33,900	0	0	By Investments:
To Income Account	125	0	0	India 3 per Cent.: £25,000 at 72	18,000	0	0
				Chili 4 per Cent.: £5,000 at 90	4,500	0	0
				London United Tramways: £10,000 4 per Cent. Debentures at 70	7,000	0	0
				West African Trading Co., Ltd.: 1,000 Shares £1 each fully paid	1,000	0	0
				Freehold House	2,600	0	0
				Furniture and Effects	800	0	0
				Cash at Bank	125	0	0

	34,025	0	0		34,025	0	0

Mr. Gunter requires Accounts to be prepared, showing the position of affairs at the 14th July, 1914, and volunteers the following information:—

(1) The Investments remain unaltered, with the exception of the India 3% Stock, which was sold on the 10th January, 1914, and the proceeds, viz., £18,500, were invested in a Mortgage at 5% Interest payable half-yearly on the 10th July and 10th January each year.

(2) The Coupons on the Chili 4% Bonds are payable on the 1st April and 1st October, and the Interest on the London United Tramway Debenture Stock on the 1st January and 1st July in each year.

(3) On 3rd July, 1914, a Final Dividend at the rate of 15% per annum, free of Tax, was declared by the West African Trading Company, Ltd., and paid on the 8th July, 1914, making, with the interim dividend paid on the 10th January, 1914, 10% for the year ended 30th June, 1914, free of tax.

(4) The Freehold House was let on a full repairing lease at an annual rental of £146, the assessment was also £146. The rent is payable quarterly on the usual quarter days.

(5) The Trustees had paid to the late Mrs. Wiggins £75 on account of income on the 12th day of each month, including March, 1914.

(6) The Professional Accountant's fee for writing up the books from the 22nd September, 1913, to 14th July, 1914, and making the necessary adjustments was agreed at 100 guineas, and this fee was to be apportioned between Mr. Gunter and the Estate of Mrs. Wiggins deceased equally.

Write up the Accounts for the period, making the necessary adjustments, and prepare Balance Sheet dated 14th July, 1914, showing the amount due.

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