ACC322

FINANCIAL REPORTING ACCOUNTING IV

ACCOUNTING FOR THE ESTATES OF DECEASED PERSONS

Illustrative Questions

1. The estate of Kufa Kunoga, deceased, which consisted entirely of personal property, amounted, after payment
of debts and funeral expenses, taxes and administration expenses to Tshs 70,000,000/=. He bequeathed1 the
following legacies:

To Mrs Kunoga (widow) Tshs 20,000,000/=

To Miss Vera Kunoga (daughter, age 20) Tshs 4,000,000/=
To Mrs Nora Majuto (daughter) Tshs 6,000,000/=
Nora Majuto, who predeceased her father, Kufa Kunoga, left by will the whole of the residue of her estate
to her first cousin, Kingwendu, after having made ample provision for her children.
To Samuel Jackson, (executor) a handsome gratuity
To Juma Kunoga (brother) Tshs 2,000,000/=
To Miss Paula Kunoga (daughter) Tshs 6,000,000/=
Paula predeceased her father, Kufa Kunoga, and by will left the whole of the residue of her estate to her
first cousin, Kingwendu.
Augustus John (his driver) Tshs 4,000,000/=
To Mrs Jacqueline Kingwendu (stranger) Tshs 6,000,000/=
Mrs Kingwendu, who predeceased the testator, by her will, left the whole of the residue of estate to her
husband, Kingwendu.
To Kingwendu, gold watch valued for probate at Tshs 2,000,000/=. The testator also left for Mr. Kingwendu
“Tshs 200,000/= Govt. Securities out of my holding of Government securities”. Note! The testator had sold his
government securities shortly before death.
To Chande (friend) his collection of old-fashioned boxes, valued for probate at Tshs 6,000,000/=
To Choki (his wife’s stepfather’s brother), “Tshs 2,000,000/= payable out of my holding of 3% government
loan”. Note! The testator had sold his 3% government loan shortly before death.
The residue to the Muhimbili Hospital

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Bequeath = to offer personal property in a will
Bequest = a gift of personal property made by a testator

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 Required:
(i) Prepare a statement showing the distribution of the estate and
(ii) The legacies account in the estate books of Kufa Kunoga, deceased

2. The estate of Mr. Mashiko, deceased, after payment of debts, funeral expenses, and testamentary expenses,
consisted of the following:
Cash at bank ................................................................................................... Tshs 15,000,000/=
House hold furniture and personal effects valued at .......................................... Tshs 2,000,000/=
Tshs 1,000,000/=, 5 ½% NDC bonds valued at .................................................. Tshs 1,000,000/=
No income was receivable from the date of death to the date of distribution. By will he bequeathed the
following legacies: -
To his wife ................................................................................................. Tshs 14,500,000/=
To his wife ........................................................................ His Household furniture and effects
To his son, Elia............................................................................................. Tshs 3,000,000/=
To his daughter, Joan .................................................................................. Tshs 2,000,000/=
To his daughter, Joan ........................................ His holding of Tshs 1,000,000/= NDC bonds
To his brother, William ................................................................ His freehold country cottage
To his nephew, Sheba, “Tshs 500,000/=; 3% Savings bonds out of his holding in 3% savings bonds”
To his long-time friend, Bambo,“Tshs 500,000 payable out of his holding of 3% Savings bonds”
To his friend, Pwagu ...................................................................................... Tshs 500,000/=
The testator, some years prior to his death, had sold his holding of Tshs 1,000,000/=, 3% Savings bonds. He
had also sold his freehold country cottage, the net proceeds of which amounted to Tshs 800,000/=. His friend,
Pwagu, a bachelor, predeceased him.
Required: Prepare a statement showing the distribution of the estate.