In all cases where administrators or trustees are responsible for the investment of the funds of an estate, they are entitled to receive commission on the income. The commission in all of these cases is at the regular rate, that is, 5% on the first thousand dollars received and paid out, etc.
EXAMPLES
1. Two trustees collect in one year an income of $36,000.00 for a beneficiary, the expense being $3,000.00. If each trustee receives an equal share, what commission will be paid to each, and what sum shall be paid to the beneficiary? Ans. Each trustee, $275.00; beneficiary, $3,275.00.
2. Executor X collects of the corpus of an estate $30,000.00, executor Y collects $40,000.00. Together they pay out $55,000.00. Commissions are to be divided in proportion to the amount collected by each. What commission will each receive and what is the net amount to be paid to the residuary legatee? Ans. Commissions: X, $381.43; Y, $508.57. Residuary legatee, $14,110.00.
3. Four trustees collect and pay out of an estate $350,000.00, the total debts of the estate being $135,000.00. What commission will each trustee receive? Ans. $2,767.50.
SAMPLE ACCOUNTS
6. Following are the transactions and accounts of David Brown, executor of the estate of Henry Snow, deceased. For keeping the accounts, the journal, cash book, and ledger are the books used.
| June 1, 1908 | ||
| Henry Snow died this day, naming David Brown executor. | ||
| —3— | ||
| Estate inventoried and appraised as follows: | ||
| Cash in bank | $390.50 | |
| Mortgages | 5,000.00 | |
| R. R. stocks $5,000.00 appraised @ 112 | $5,600.00 | |
| Household furniture | 1,000.00 | |
| Debtors to the estate | ||
| Henry Alton | $160.00 | |
| J. L. Lawrence | 52.00 | |
| D. Pringle | 75.00 | |
| F. D. Smith | 84.50 | 371.50 |
| Interest accrued on mortgages $5,000.00 | ||
| —5 mo. @ 5% | 104.16 | |
| Accrued dividends on stock estimated | ||
| at 3% semi-annual, payable July | ||
| 1st—5 mo. accrued | 137.50 | |
| 12,603.66 | ||
| —30— | ||
| Approved the following claims: | ||
| Dr. Knight bill | 200.00 | |
| Funeral expenses—Undertaker | 250.00 | |
| Henry Cole account | 62.00 | |
| H. Dawson account | 17.00 | |
| Probate expenses | 100.00 | |
| —30— | ||
| Additional assets discovered | ||
| Geo. Smith owes the estate | 50.00 | |
| July 1 | ||
| Collected 6 mo. interest on mortgage | ||
| at 5% | 250.00 | |
| —1— | ||
| Collected the following accounts: | ||
| Henry Alton | 160.00 | |
| D. Pringle | 75.00 | |
| —1— | ||
| Paid the following: | ||
| Dr. Knight | 200.00 | |
| Funeral expenses | 250.00 | |
| Henry Cole | 62.00 | |
| H. Dawson | 17.00 | |
| Probate expenses | 100.00 | |
| —5— | ||
| Received dividend on R. R. stock | ||
| 3½% semi-annual on $5,000.00 | $175.00 | |
| —5— | ||
| Sold R. R. stock $5,000.00 @ 132 | 6,600.00 | |
| Sept. 1 | ||
| Collected the following account: | ||
| J. L. Lawrence | 52.00 | |
| —20— | ||
| Sold H. H. furniture | 790.00 | |
| Depreciation on H. H. furniture | 210.00 | |
| Nov. 1 | ||
| Collected the following accounts: | ||
| F. D. Smith | 84.50 | |
| Geo. Smith | 50.00 | |
| Dec. 1 | ||
| Collected 6 mo. interest on mortgage | ||
| $5,000.00 @ 5% | 125.00 | |
| —1— | ||
| Sold mortgage | 5,000.00 | |
A GENERAL VIEW OF THE PLANT OF THE FOX TYPEWRITER COMPANY, GRAND RAPIDS, MICH.