PROFESSIONAL EXAMINATIONS.
The article presents problems presented in the second part of the November 1940, C.P.A. examination prepared by the Board of Examiners of the American Institute of Accountants. One of the problems asked was, the will of E. M. Dodd, who died on December 31, 1933, provided cash bequests of $40,000 to Mrs. Dodd and $15 ,000 each to two children, the residuary estate to be divided equally among the three beneficiaries. Mrs. Dodd was appointed executrix and trustee without fees or other emoluments. By court order Mrs. Dodd was to receive a family allowance of $4,000 a month, commencing January 1, 1934, payable from income or from any cash principal available if the income should be inadequate. The estate never had enough cash available to pay up the full allowance nor could any part of the cash bequests be paid. Accordingly a considerable liability to Mrs. Dodd had accumulated toward the end of 1939 for the unpaid portion of the family allowance. The students were asked to prepare adjustments to the trail balance, columnar worksheet showing the trial balance before and after adjustment.
- DOI
- 10.2308/tar-7051241
- Volume
- 16 (1)
- Pages
- 113-125
- Language
- en
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