ing turned over to the remaindermen, the trustee should close all the accounts on his books so that there will be no balance left in any of them. With the system outlined in the preceding two chapters the final closing entry would be: The report of a trustee who is handling more than one trust contains a considerable number of schedules. For the convenience of everyone who has to do with the report, it is always wise to furnish an index in the form of a list of schedules. This index may be in substantially the following form: ESTATE OF JAMES C. DAWSON FIRST ANNUAL Report of Charles Frazier, Trustee LIST OF SCHEDULES Summaries Schedule No. 1 Summary Statement of Trusts Principal Trust No. 1, for the Benefit of Butler University Schedule No. 2 Principal of Trust, January 31, 1922 Schedule No. 6 Trust No. 2, for the Benefit of Janet Dawson Reeves Schedule No. 7 Trust No. 3, for the Benefit of Mary Allen Dawson Schedule No. 10 Principal of Trust, January 31, 1922 Trust No. 4, to Guarantee an Annuity to Henry G. Dawson and to Maintain and Educate Schedule No. 14 Schedule No. 15 Schedule No. 16 Principal of Trust, January 31, 1922 Purchases During Year Schedule No. 17 Reconciliations Income Trust No. 1, for the Benefit of Butler University Schedule No. 18 Receipts Schedule No. 19 Disbursements Trust No. 2, for the Benefit of Janet Dawson Reeves Schedule No. 20 Receipts Trust No. 3, for the Benefit of Mary Allen Dawson Schedule No. 22 Schedule No. 23 Disbursements Trust No. 4, to Guarantee an Annuity to Henry G. Dawson and to Maintain and Educate Schedule No. 24 Schedule No. 25 Disbursements Schedule No. 26 Investments of Income § 677. Summary Statements of Trusts Schedule No. I is used to show the general condition of the entire estate in the hands of the trustee on the date as of which the report is filed. If any form is prescribed it should be used, otherwise it may be presented in the following form: ESTATE OF JAMES C. DAWSON FIRST ANNUAL REPORT OF CHARLES FRAZIer, Trustee Reference to the preceding chapter and to the synoptic and trust ledger worked out therein will show where the figures appearing on this schedule were obtained. In total they constitute the trial balance of the synoptic at the close of business on January 31, 1922, except that in this schedule cash is divided between principal and income. In detail the various statements on the schedule represent the trial balances of the various accounts in the trust ledger on that date. These various amounts are analyzed in the supporting schedules which follow. § 678. Schedules of Principal The amount of the principal of a trust at any time is the figure obtained by the following arithmetical steps: 1. Given the principal at the start, which may be the amount when the trust was established or the amount at the date of last previous report rendered by the trustee. 2. Add any increase due to profit on sales of assets or subtract any loss. 3. Add any increase to the principal due to the reversion of excess income to the principal (see § 667), or to any other cause. 4. Subtract any reduction of principal due to distribution or other causes. The amount of cash on hand at any date is the sum of the amount at the start, plus the amount received from sales, from reversions of income, and from other causes, less the amount disbursed for purchases, expenses, and in distribution. The book value of the investments will in the same way be the amount at the start, less the book value of the sales, plus the cost of the purchases, plus or minus any changes in the amount of the principal due to additional donations or to distribution. The schedules having to do with principal are so designed as to show the changes in cash, investments, and principal from each of the above causes, and to group the transactions under each of these heads in such a way that the mathematical accuracy of the figures in the summary statements may be seen and the propriety of the trustee's transactions examined into. § 679. Inventory Schedules The next schedule suggested for each trust is what may be called an "inventory schedule." The general rules for the amount of description to be given in inventories furnished by fiduciaries (see § 282) should be followed. The headings which it is necessary to show are Cash and Investments. Under Cash should be detailed the various depositories with the amounts in the possession of each and the pass-book number or any other identifying information. The general heading, Investments, should be split up into the necessary subclassifications. Those which are most common are Real Estate, Mortgages, Notes Receivable, Stocks (or "Shares" as they are called in some jurisdictions) and Bonds. Others are accounts receivable, unsecured notes receivable, jewelry, etc. In brief, each asset should be so described as to distinguish it absolutely. Such a schedule may be in the following form: ESTATE OF JAMES C. DAWSON FIRST ANNUAL REPORT OF CHARLES FRAZIER, Trustee |