PROBLEM No. 31.

Mr. George Huggins died on the 31st October, 1913, and with the exception of a few legacies, bequeathed free of duty, he left the whole of his property to his Widow for life with remainder over to his friend Mr. Giblets, provided that gentleman outlived Mrs. Huggins.

Now this arrangement placed Mr. Giblets in an embarrassing predicament, especially as Mrs. Huggins' health improved so wonderfully after her husband's death.

It appeared to Mr. Giblets, therefore, that matrimony was the only safe solution of the difficulty, and so he went on his knees before the Widow. But the lady grasped the situation immediately, and declined the honour.

Friendship being thus early at an end Mr. Giblets resolved to worry the Widow, bearing in mind the saying that "Worry kills." So he set himself to quibble about every detail in the administration of the late Mr. Huggins' Estate, particularly as regards the apportionment of Revenue between Capital and Income. But the Widow would not worry, and wisely suggested to the Solicitors that all matters involving accounts should be left to some first-class Firm of Professional Accountants to settle.

This was done, and the following are the Cash Receipts and Payments made by the Trustees up to the 30th June, 1914.

What amount was paid to Mrs. Huggins on the 30th June, 1914?

PROBLEM No. 32.

Mr. Nathaniel Soworthy, a great breeder of prize pigs, had the misfortune to be knocked down one day by his favourite Berkshire Boar, and his head was cut open on the corner of the pig-sty. Notwithstanding the fact that Mr. Soworthy prided himself exceedingly on the extreme cleanliness of his pig-sties, where, as he was often heard to say, he would be quite ready to eat his own dinner, he discovered on that lamentable occasion what must have been the sole surviving microbe on the premises which, entering his circulation, set up blood poisoning with the result that he passed away a few days later, viz., at 6 p.m. on the evening of the 31st January, 1914.

Mr. Soworthy was a man of many hobbies, and in addition to his prize pigs he possessed a unique collection of silver salt-cellars reputed to be one of the finest in the country. This was valued for Probate at £5,000, while the pigs were estimated to be worth £2,500.

In addition he died possessed of the following property:—

By his Will he left the following bequests:

The prize pigs were directed to be sold and realised £2,690. The collection of silver salt-cellars was bequeathed to the Victoria and Albert Museum on condition that it should be shown as a whole and named the Soworthy Collection. This bequest was accepted.

The debts due at death amounted to £215, and the funeral expenses to £45.

Within a week of the funeral the famous Soworthy Sow died in giving birth to a fine litter of ten little pigs, two of which unfortunately pre-deceased their Mother. The result of this event had been awaited before sending the Sow to Mr. Wackenbath, who was thus deprived of this mark of the deceased gentleman's affection. The value of the Sow alive had been £50, but dead she was not worth more than £3 10s. 0d., while the litter, whose father was the same Berkshire Boar that had been the unwitting cause of Mr. Soworthy's death, were worth £2 a-piece.

Prepare the Estate Duty Account, the affidavit being brought in on the 31st March, 1914. Show the amount of duty and interest payable.

PROBLEM No. 33.

Referring to the preceding Problem, all bequests were left free of duty and the residue of the estate was left in equal shares to Mr. Soworthy's grand-daughter, his brother, and his adopted son.

The India Stock was sold on the 25th March, 1914, at 77; the Shares in the Improved Pork Pie Factory, Ltd., realised 24/- per share net on the 25th May, 1914, after receipt on the 1st May of a Final Dividend of 1/- per Share paid in respect of the year ending 31st March, 1914, an interim dividend of 6d. per share having been received by Mr. Soworthy prior to his decease.

The Mortgage on "Little Watchem" Farm was called in and paid off on the 30th June, 1914, while "The Piggeries" was directed to be sold and realised £14,500 after payment of all expenses, completion being made on 31st May.

The household goods and implements of husbandry were sold at the same time and produced £3,000 and £120 respectively.

The Policy money with bonus was received on February 25th and the proceeds of the sale of pigs on March 5th, while the income from the Real Estate was received on February 10th.

Estate and Legacy Duties were paid on March 31st, and the debts, funeral expenses and legacies were also paid on the same date. Executorship expenses amounting to £250 were paid on June 14th.

On the last day of each month such portion of the cash balance as was available in round thousands was placed on deposit at 3%.

Prepare Residuary Account as at June 30th, 1914, and state the duties payable on the Residue.

PROBLEM No. 34.

Referring to the two preceding Problems, prepare an Account to be rendered by the Executors to the Residuary Beneficiaries, showing the realisation and distribution of the Estate, the final payment to the Residuary Beneficiaries taking place on July 1st, 1914.

PROBLEM No. 35.

To anyone not in the secret, the conduct of Mr. Pipkin would appear inexplicable, for on March 3rd, 1914, he very deliberately entered a Tobacconist's shop, ordered a threepenny cigar, and afterwards resigned his position as Assistant Book-keeper in Messrs. Macfarlane's Grocery Establishment.

The secret, however, lay in the fact that Mrs. Pipkin had come into money, and Mr. Pipkin very naturally felt himself independent of other people and yearned for the ease and comfort appertaining to the position of a retired gentleman of means.

Mrs. Pipkin's fortune consisted of a life interest in the Property left by Mr. Austen Friars, who died on the 28th February, 1914.

This property was represented by the following assets:—

April, 1914, was the very happiest month in Mr. Pipkin's whole life, and he spent most of his time smoking his pipe in his back garden, or improving his mind by contemplating the educative pictures of the local Cinema.

The months of May and June, however, did not prove quite so pleasant, and by the middle of July Mr. Pipkin actually threatened Mrs. Pipkin that unless she kept the baby quiet he would look out for another job.

And then August came round which proved to be the most miserable month of Mr. Pipkin's whole life, for Mrs. Pipkin was suddenly taken ill after consuming a liberal portion of Tinned Salmon. Never before did he realise how much he loved his Wife or what a blow to his heart her death would be. He never left her bedside and he spared no expense, but, in spite of all, Mrs. Pipkin passed away on the 19th August, 1914.

It would be idle to attempt to depict Mr. Pipkin's feelings; it is enough to say that he became a poorer but a wiser man.

On the 3rd April, 1914, a dividend for the year ending 31st January, 1914, at the rate of 71⁄2% was declared on the 200 shares in the Commercial Banking Co., Ltd., and a similar dividend was declared on the 4th April, 1915, in respect of the year ending 31st January, 1915.

On the 19th August, 1914, a final dividend at the rate of 15% per annum, free of tax, was declared on the 750 Shares in the Perpetual Rays Co., Ltd., for the half year ending 30th June, 1914. An interim dividend had been received on the 31st January, 1914, in respect of the half year ending 31st December, 1913, at the rate of 10% per annum, free of tax.

No interim dividend was paid during the Company's year ending 30th June, 1915; but on the 31st July, 1915, a dividend at the rate of 10%, free of tax, was declared in respect of the year ending 30th June, 1915.

Show the exact amount payable to Mrs. Pipkin and her Estate in respect of her life interest under the Will of Mr. Austen Friars.

PROBLEM No. 36.

The following lines were addressed by the Trustee to the Professional Accountant:—

PROBLEM No. 37.

The late Mr. John Bunyon died in affluent circumstances after having, by the exercise of keen business instincts, overcome those obstacles which confront every great philanthropist who combines the cause of humanity with the desire to achieve wealth and fame.

In his early days he vended to a suffering but suspicious public, a commodity known as "Bunyon's Specific"; and it was his custom at this time to commence his nightly oration to his potential patients at the street corner with the words, "Ladies and Gentlemen, I have extracted corns from all the Crowned Heads of Europe."

In later years, when by the aid of judicious advertising he had convinced the public that no home was complete without his famous Specific, Mr. Bunyon sold his business to a Limited Company, and on then calculating his wealth, found himself rich beyond the dreams of avarice.

He thereupon decided to enter Society, and after some difficulty procured an introduction to Mr. James Rooker, who obtained for him—for a consideration—the entrée into that sphere of Social life which he was so eminently fitted to adorn. On Mr. Rooker's advice, he purchased a Freehold House in a favourable quarter of the West End of London, but owing to a desire not to disturb certain Investments, he raised £2,500 of the purchase price by Mortgage, which at the time of his decease had not been repaid.

In view of the great services rendered to him by Mr. James Rooker, Mr. Bunyon promised to remember him and his family in his Will; which led Mr. Rooker to be very solicitous concerning Mr. Bunyon's health until he was certain that a Will had been executed, and subsequently caused him much speculation as to whether an early decease of his Patron might not be more beneficial than the advantages to be gained from him whilst alive.

Mr. Bunyon's death put an end to these speculations, and it occurred under the following circumstances. Having met Mr. Rooker by appointment at that gentleman's house, they spent a merry hour at the card table, much to Mr. Rooker's advantage. They then sallied forth in a Taxi-cab; when suddenly remembering that he had parted with all his ready cash, and knowing that Mr. Rooker never paid for cabs on principle, Mr. Bunyon ordered the chauffeur to drive to Attenborough's and there placed his diamond pin in pledge for the sum of £5. Feeling somewhat faint after this exertion, he instructed the chauffeur to drive to a Chemist's where he ordered a pick-me-up. The Chemist not knowing his customer, considered his symptoms a fit case for a dose of "Bunyon's Specific," of which Mr. Bunyon unwittingly partook, and so met his death.

Mr. Bunyon's Will was found to contain the following Legacies and Devises in favour of the Rooker Family:—

It was found that both the Shares in "Bunyon, Ltd." and the Consols, had been sold shortly before Mr. Bunyon's death. The Freehold House was valued at £6,500, the Diamond Pin at £25.

The Net value of his Estate when aggregated was £108,000. What did the Rooker Family receive, and what duties were payable by them?