W1-2-60-1-6

JOMO KENYATTA UNIVERSITY OF AGRICULTURE AND TECHNOLOGY

UNIVERSITY EXAMINATIONS 2014/2015
FOURTH YEAR SECOND SEMESTER EXAMINATION FOR THE DEGREE
OF BACHELOR OF COMMERCE

HBA 2306 : TRUST AND EXECUTORSHIPS’ LAW AND ACCOUNTS

DATE: AUGUST 2015 TIME: 2 HOURS

INSTRUCTIONS:
ANSWER QUESTION ONE AND ANY OTHER TWO QUESTIONS
=========================================================
QUESTION ONE [COMPULSORY ]
(a) Describe main reasons why testamentary dispositions fail in executorships
law. [10 marks]
(b) Explain the main trusts created by operation of law [8 marks]
(c) Kamau dies on April 30th 2014 leaving shs. 100 000 , 12% loan stock.
Interest is paid on 30th June and 31st December each year. On 30th June,
2014, interest for half year was received.
Required:
(a) Capital [4 marks]
(b) Income [4 marks]
(c) Estate capital [4 marks]

QUESTION TWO
?? repetition of question one!!

QUESTION THREE
(a) Explain the main characteristics of a will [8 marks]
(b) Describe why public trusts are recognized for charitable purpose
[8 marks]
 (c) Patel holds shs. 10 000 kenyan Ltd ordinary shares of shs. 10 each. He dies
on 31st march 2015, on 30th September 2015, keigen decides to pay
dividends at 20% for year ended 30th June 2015.
Required:
Prepare relevant entries in the books [6 marks

QUESTION FOUR
(a) Discuss how trustees are terminated as well as the main duties of trusties.
[10 marks]
(b) Describe the main legacies in the executorship law [10 marks