31. Sidney S. Dawson London City and Midland Bank, A. Landlord Amount. £ 8. d. 2 10 3 13 226 2 9 16 9 Cost of registering deed Valuation fees re No. 2 Doubtful Cheque Book 2 2 0 026 7 5 9 Rent of 2 Doubtful Lane from Dividend of 2s. Od. in the £ on £602: 12: 9 paid to 7 creditors April 20. 30. 30. Note.-Special Bank Account opened with the London City and Midland Bank, Limited :- If any dividend has been paid, this final account is to be accompanied by a Dividend List (as mentioned in the affidavit). The form is called D/A. 5, and is as under: List of Dividends or Composition In the matter of a Deed of Arrangement, dated the 21st day of January 1903, and registered the 28th day of January 1903, between Elusive Detter as Debtor and Sidney Stanley Dawson as Trustee. I hereby certify that a Dividend [or Composition] of two shillings and one halfpenny in the £ has been paid in the above matter, and that the Creditors whose names are set forth below are entitled to the amounts set opposite their respective names in the columns headed "Amount of Dividend [or Composition]," and I further certify that the column headed "Unpaid" contains a true and complete list of all unpaid Dividends or Compositions. Both the account and Dividend List, if any, must be marked as exhibits to the affidavit by the Commissioner before whom the affidavit is sworn, and where more than one trustee has been appointed the account should be verified by each trustee. It will be observed that the total amount only of each dividend (or instalments of composition) is entered in the trustee's account of receipts and payments, the detail being given in the Dividend List. (See note below as to "unclaimed dividends.") Where the trustee carries on the business of the debtor a separate Trading Account must be kept, and a copy thereof supplied to the Board of Trade as a distinct account, the totals only of the receipts and payments on Trading Account being incorporated in the yearly account (Rule 9 of 1890). Specimen form and entries: In the matter of a Deed of Arrangement, dated the 21st day of January 1903, and registered the 28th day of January 1903, between Elusive Detter as Debtor and Sidney Stanley Dawson as Trustee. Dr. Date. The Trustee of the property of the Debtor in account with the Estate. 1903. Jan. 22 23 8 11 24 Cr. Payments. £ 8. d. 10 5 6 3 16 6 1 1 0 6 7 8 3 18 6 55 0 6 2 12 0 Jan. 24 By Cash Purchases. Wages from 21st inst. to date Rent of branch shop from 21st inst. to date Feb. 2 Cash Purchases Wages for week -gas from 21st Janu ary to date Rent from 25th Janu ary to 14th inst., at 3 13 0 600 As per "Receipts and Payments Account." 86 18 8 90 2 8 To be inserted if the accounts have been audited by a Committee of Inspection. Dated 18th day of May 1903. SIDNEY S. DAWSON, Trustee. +We have examined this Account with the Vouchers, and find the same correct, and we are of opinion the expenditure has been proper. Note. This certificate is optional, and in practice is seldom obtained, for there are no statutory provisions as to audit by Committee of Inspection of the accounts of trustees under Deeds of Arrangement. Where the deed has been made by debtors in partnership, distinct accounts must be kept (and transmitted) showing the receipts and payments of the joint estate and of each of the separate estates (Deeds of Arrangement, Rules 1890, No. 13). In each account, each receipt and payment must be entered in such a manner as will sufficiently explain its nature (Rule 8). In the case of rent, rates, taxes, and wages, the period covered by the payment should be stated (Board of Trade Regulations). Petty expenses must be entered in the accounts in sufficient detail to show that no estimated charges are made (Rule 10). Where property has been realised the gross proceeds of sale must be entered under receipts in the account, and the necessary disbursements incidental to sales must be entered as payments (Rule 11). Where such charges have been paid by the purchaser the fact should be stated in the account together with the amount of the charges, if within the knowledge of the trustee. If any property has been disposed of by private treaty or by tender, the fact should be stated in the account. It is not necessary that the payments into and withdrawals from bank should be shown in the account of receipts and payments, but where a special banking account has been opened in the name of the trustee a memorandum similar to that shown at the foot of the specimen account (supra) should be appended. Where no special banking account has been opened the fact should be stated. Where law costs are charged in the account the trustee should state on the face of the account what portion of such costs is (a) in connection with the preparation and registration of the deed, and (b) in connection with legal work done for the trustee. Where the costs of the preparation and registration of the deed are not charged in the account, a note should be added at the foot as to whether the debtor himself made any, and if so, what payment in respect of such costs (Board of Trade Regulations). The accounts must bear an ad valorem (bankruptcy) stamp, based upon the gross amount of the assets realised and brought to credit, or upon the gross amount of the composition distributed during the period comprised in the account. For the purpose of assessing this duty, the payments made upon Trading Account and payments to secured creditors in respect of their securities may be deducted from the total realisations. This scale is not cumulative; that is to say, in assessing the stampduty upon the second or subsequent account filed, the amount upon which duty has already been paid on prior accounts must not be considered. Where it appears to the Board of Trade that an account of receipts and payments in the prescribed form may, for special reasons, be dispensed with, the trustee may be permitted to transmit such a summary or modified statement of accounts as the Board of Trade may think sufficient (Rule 17). Where the Board of Trade consider the accounts incomplete, or that they require amending or explaining, they may make such requisitions upon the trustee thereupon as they may think necessary (Rule 14). The accounts transmitted to the Board of Trade may be inspected by any creditor upon payment of one shilling, and the Board of Trade will supply copies of or extracts therefrom to any creditor upon payment of fourpence per folio of 72 words or figures. A trustee under a deed of arrangement is not required, as are trustees in bankruptcy and liquidators in voluntary windings-up, to pay over undistributed balances and unclaimed dividends to the Bank of England. Many trustees, desiring to obtain a complete discharge from their trust, have voluntarily offered to pay over unclaimed dividends to the Bankruptcy Estates Account, but the Board of Trade have no power to accept them, and they accordingly remain in the hands or under the control of the trustees. Under the circumstances trustees can protect themselves by paying all such unclaimed dividends into a special banking account with their own bankers, in case some future Bankruptcy Act should deal with this matter with retrospective effect, as in the case of the Act of 1883. SIDNEY S. DAWSON. |
