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TAX3703 Assignment 2 Semester 2 of 2024
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Tax3703 – Second Assignment 2024Question 1
a) Difference in accrual
(R56 000 x 2) = R112 000
Julia had more in accrual than Anno (R112 000/2) = R56 000 will be
subtracted from Julia’s estate and included in Anno’s estate.
b) Why the redistribution agreement was entered into.
- The plan did not say exactly who should get the farm and
agricultural implements.
- This would have caused fragmentation of assets which might have
been against the planner’s wishes.
- To ensure that the plan is flexible, practical and legal, for example
the law in South Africa doesn’t allow subdivision of agricultural land.
c) Prepare the complete executor’s account to be submitted to
the Master in the estate of the late Anno Simba.
First and final liquidation and distribution accounts in the estate of
Anno Simba (ID6411230116077). Anno died on 15 May 2024 in
Mbombela where he resided. Anno was married to Julia out of
community of property with accrual.
Master’s reference number: 0523/24.
LIQUIDATION ACCOUNT R
Assets not sold
Residence at 28 Hummingbird Street, Mbombela
2 150 000
Furniture and household goods
1 100 000
Farm, Mbombela
3 200 000
Agricultural implements
650 000
7 100 000
Cash and assets reduced to cash
Motor vehicle
360 000
Cash from a bank account
109 000
, Policy proceeds
2 500 000
Listed shares
2 375 000
Dividends accrued on 31 March 2024
75 000
Accrual claim
56 000
5 475 00
0
Total assets (R7 100 000 + R5 475 000)
R12 575 000
Liabilities & Administrative expenses
Account from Family Pharmacy
1 000
Income tax assessment
45 000
Master’s fees
7 000
Executor’s remuneration (R12 575 000 x 3.5%)
440 125
493 125
Estate duty – see Estate duty addendum
915 425
Total liabilities and administrative expenses
R1 408 550
Amount available for distribution (R12 575 000 –
R1 408 550) R11 166 450
RECAPITULATION ACCOUNT
Cash and assets reduced to cash
5 475 000
Less: Liabilities & administrative expenses
(1 408 550)
Cash available for distribution
R4 066 450
DISTRIBUTION ACCOUNT
Amount available for distribution
R11 166 450
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