same way the amount of profit realized in the sale of an asset above the appraised value should be entered in the column headed, Increase-Credit.

Each entry made in these columns is the result of a change in the amount of corpus, and its effect must be shown by inserting on the same line in the Corpus-Credit Balance column the new corpus. This will be the previous balance less the amount of the new entry if it is a debit or plus its amount if it is a credit.

It will be evident that, since the only entries that are made on this sheet are those which affect the corpus of the estate by increasing or decreasing it, the entry for the sale of an asset should, so far as this sheet is concerned, show only the amount of profit or loss and not the amount at which the asset was originally inventoried.

Form 32a is designed to be used in administratorships and executorships. When a bank or trust company is acting as a trustee, either of an estate or under a voluntary trust agreement, Form 32i may be used. Except for the additional information called for at the top of the latter form, it is to all intents the same as Form 32a, and all the entries suggested in this chapter for Form 32a are equally applicable for Form 321 if that is substituted.

§ 687. Bank Balances Schedule

On Form 32b are entered all bank accounts which the decedent had during his lifetime, including savings bank accounts. These items were, of course, entered on the control sheet as a part of the original inventory. The control sheet, however, will not show their reduction or complete collection, as it shows only changes in the amount of corpus. When these assets are collected, entries recording this fact will be made in the credit column of the bank balances schedule. The headings of the other columns are self-explanatory.

§ 688. Stocks Schedule

Form 32c is used for all stocks which may form a part of the estate. It is divided into several different blocks to facilitate the keeping of separate accounts for each particular kind of stock. In this way no difficulty is experienced in tracing the different events in the history of the administration of the estate relating to any one particular security. Each block provides for the entry of full information about the stock recorded therein.

When the stock is taken into possession by the executor it will be recorded as a part of the inventory on the control sheet at the market price or appraised value as of the date of death. It will also be recorded on Form 32c in the column headed, Received-Debit.

When the stock is sold there will almost certainly be either a loss or a gain. The loss or gain affects the corpus of the estate and is therefore recorded on Form 32a, as heretofore explained. The inventory value, which will be the same as the figure appearing in the Received-Debit column, will at the time of sale be recorded in the column headed, Delivered— Credit. Thus the asset is removed from the books, having been exchanged for another asset, namely, cash. The balance column requires no explanation. Such information as the dividend rate, certificate numbers, conversion privilege, etc., should be obtained and entered on the form for reference when needed.

§ 689. Investments Schedule

Form 32d provides for the recording of assets consisting of bonds, notes, etc., except bonds and mortgages on real property. The form is similar to Form 32c and should be handled in the same way. Anyone at all familiar with transactions in securities will at once see the advantage of having the special information called for in these forms.

§ 690. Accrued Receivables Schedule

Form 32e provides a place in which to record the class. of assets found in almost every estate and generally known as "accrued receivables." This class includes all interest accrued to the date of death of the decedent not collected by him before death, whether past due or not yet due, dividends declared before the date of death but not actually paid or collected, and all similar assets which are a part of the corpus of the estate. The use of the columns is self-explanatory.

§ 691. Real Estate and Mortgages Schedule

A careful study of Form 32f is desirable, as it is one of the most important of the entire set. It is used for the recording of all bonds and mortgages on real property forming a part of the corpus of the estate, and also of all real property owned. A separate sheet should be used for each mortgage and for each piece of real property.

First we shall explain the use of the form to record a bond and mortgage. The bond and mortgage would in all cases be recorded as a part of the inventory of the estate on Form 32a as a credit. The debit will appear on Form 32f. The information required properly to fill out the form should be obtained at the earliest possible moment and entered in the places indicated. If a trust estate is being handled, mortgages on real property will form an important part of the investment. A description of the property should be entered in brief so that the property can be quickly identified without a reference to the mortgage, which would probably be kept in the vaults and be therefore not readily accessible. If the property is located in a city, the section and block numbers are important. Frequent appraisals of the property under mortgage should be had and a record of such appraisals entered in the. books. The tax bills should be examined by the trustee after every tax-paying period, and this fact should be entered. The

interest columns are important as a record but not as a part of the accounting because interest is income and therefore not to be entered in the corpus forms. (See § 696.) The columns at the extreme right of this form are devised for the purpose of keeping a complete record of the insurance on the property mortgaged.

When it is desired to use the form for the purpose of recording real property, all that is necessary is to strike out the word "Mortgages" from the title. Most of the other information is helpful, but the spaces which apply only to mortgages (such as interest, mortgage date, principal due, extended to, etc.) are not used.

The reverse of the form is used for any additional information which may be desired, such as a list of papers received in connection with the property, etc.

§ 692. Miscellaneous Schedule

Form 32g is for the purpose of recording any other assets of an estate which may come into the hands of the executor, such as jewelry, works of art, household furniture, clothing, and the like.

§ 693. Cash Schedule

The cash sheet, Form 32h, is most important because on it are recorded all transactions involving corpus cash. It is set up in such a way that the person preparing the account of proceedings may the more readily pick out the items to be placed in particular schedules.

When the executor first enters upon his duties he will find little or no cash. Usually a decedent does not have more than a few dollars in actual cash. The general practice of trust companies is to consider money in a decedent's deposit account in a bank as not being cash until it has been taken possession of. Following this theory the trust company acting as execu

tor, when it receives the bank book or other evidence showing that the decedent maintained a bank account with a certain. bank and that the balance in that bank on the date of death was a given sum, enters the amount on Form 32a as a credit to the estate in the inventory column, thus making itself accountable for the amount. The debit is entered on Form 32b. When the trust company has filed its certificate of appointment as executor and thus shown its right to handle the funds, the bank account should be entered on Form 32h in the second column as a debit, Realization of Assets, Personalty.

If the executor sells a piece of real property, as he may do where such a power is conferred upon him by the will, he will enter the proceeds of the sale in the first column on this form as a debit, Realization of Assets, Realty. In the case of a realization of cash from the sale of a piece of real property the credit would be on Form 32f.

From time to time, as the various assets which the executor took into possession are sold and thus converted into cash, entries will be made in one of the two columns mentioned, namely, (1) Realization of Assets, Realty, (2) Realization of Assets, Personalty. The third debit column is provided for cash found in the possession of the decedent or in his safety deposit box after he dies. This would include gold coins and the like.

On the credit side we have three columns whose headings will readily explain their uses. The entries in each of these columns, it will be seen, affect the corpus of the estate and therefore will be entered on Form 32a in the first column, which is a debit column. Thus we have the debit and credit entries.

Particular attention should be called to the fact that this schedule has to do with corpus cash only. Income transactions are handled through Form 32j. (See § 696, “Accounting for Income.")