has elicited an indecisive reply from the President of Institute supporting the Society, and would thus assist the Local Government Board. in making it self-supporting. 29th June 1906. E. A. R. ADAMS. Question 40.-Mr. Radford: To ask the President of the Local Government Board if he will cause the proceedings and minutes of evidence already taken by the Departmental Committee on the Accounts of Local Authorities to be printed and published during the Parliamentary recess; and if he will subsequently arrange that representatives of the Press be admitted to any future sittings of the Committee (27th June 1906). A. Mr. John Burns: It rests with the Committee to determine on their procedure, and I understand that they decided, at their first meeting, that it would be undesirable to publish the evidence taken by them until the conclusion of their Inquiry, or to admit representatives of the Press to their meetings (27th June 1906). Hon. Members' Subscription to London (To the Editor of The Accountant.) SIR, I should like to mention a point which may have been discussed before in your columns. Under the present rules of the London Students' Society all hon. members who have been in practice for three years have their subscriptions raised from 10s. 6d. to £1 Is.; this, I know, causes many young practitioners to cease to be members who would otherwise continue to support the Society, and appears to me to be rather a mistaken policy. The Society is so much more useful to ordinary members than to hon. members that it would not be unjust to the former to raise their annual subscription to 15s., and reduce that of the latter to a nominal amount of, say, 5s. If this reduction was made it need not stop the members of the larger firms from continuing to pay £1 Is. per annum, and I feel sure it would result in a much larger proportion of the London members of the (To the Editor of The Accountant.) SIR,—I shall be glad to have your opinion, or that of your readers, on the following points arising out of a trust. Testator has left his estate to be equally divided among his children, subject to: (1) Advances made during his lifetime to child A. being brought into hotchpot and deducted from A.'s share. (2) A portion of estate consisting of freehold property being sold by the executors to child B. for a fixed sum to be deducted from B.'s share. The sum mentioned is considered to be below the real value of the property. Query:-Will both (1) and (2) have to be included for probate as part of testator's estate subject to estate duty, or will same be excluded from Probate Account, but duty at 1 per cent. paid by A. and B. at time of passing Residuary Account? Also, have the Commissioners of Inland Revenue power to elect that (2) shall be valued for estate duty at a higher figure than the estate receives from B., the purchaser ? Thanking you in anticipation, are little better than schools for training premium clerks or for getting work-principally auditing-done for next to nothing. The English C.A.'s need not be the least backward in protesting against this state of matters. It is only ten years ago since the Scottish Chartered Societies promoted a Bill to prohibit, under a heavy penalty, any Chartered Accountant, not being a Scotch C.A., from using the title "Chartered Accountant " in Scotland. This would have prevented every member of the Institute from using his distinctive description and initials in Scotland. Further, the Scotch Chartered Societies, in a public document, claimed-sixteen years after the Institute obtained its Charter-to have long exclusively used the distinctive description of "Chartered Accountant." As a Scotchman resident in England, but although qualified not practising, I speak with freedom. What I think is really and urgently needed is an understanding between the Institute and the Society, which have aims and interests in cominon. June 27th 1906. Yours truly, DELTA. Treatment of Losses made prior to Incorporation of Company. (To the Editor of The Accountant.) SIR, The following particulars have come under my notice, and I shall be glad if you or your readers can give me information upon the points involved: The X. Y. Z. Company, Lim., was incorporated on the 11th February 1906, taking over the business of X. Y. Z. as and from the 31st March 1905. The purchase price was fixed at £20,000 (of which £4,000 was for goodwill) payable in the following manner, that is to say : The agreement for sale provides that (a) Interest be paid from 31st March 1905 on the unpaid balance of purchase money. (b) The vendors be appointed managing directors, as and from the 31st March 1905. at a salary of £500 each per annum. (c) The vendors be also appointed directors at an annual fee of £50 each. The conditions attached to the debentures provide that they carry interest as from 31st March 1905. The company closed its books on the 31st March 1906, and the past year's trading has resulted in a loss of some £2,000, which is after charging for a full year's (a) Interest on debentures. (b) Interest on vendors' unpaid purchase money. The managing directors (who, as stated above, are the vendors) are considerably surprised at this result, and suggest that a portion of the loss-namely, from the 31st March 1905 (the date as and from which the company took over the business) to the 11th February 1906 (the date upon which the company was incorporated) — be capitalised, and that such capitalisation be cancelled or reduced by their surrendering 2,000 of the fully paid £1 shares allotted to them in part consideration of the purchase money. I am unable to find any cases reported exactly similar to the above, and I shall be glad to know if the course suggested can be adopted, and, if so, in what way; and whether the managing directors' salaries, directors' fees, interest on debentures, and vendors' purchase money should be apportioned tɔ the 11th February, or whether some, or any, of these charges are payable by the company entirely out of its avail £5,000 By Debentures, carrying interest at 5 per able profits since incorporation. cent. per annum. 1,000 By twelve Bills payable at intervals of one month, commenci g on the 1st April 1906; and 14,000 By the allotment of 14,000 1 Shares as fully paid-up in the company. I shall be glad to have the benefit of your readers' views upon the above points. 28th June 1906. I am, dear Sir, yours faithfully, ANACA. £20,000 [We will deal with this point in an early issue.-ED. Acct.] Voluntary Liquidation. (To the Editor of The Accountant.) SIR,—Is it necessary for a liquidator to go through the form of settling the list of contributories in the case of a company whose shares are fully paid? Recently a body of shareholders were thrown into a very uncomfortable frame of mind by receiving notice of a settlement of their list. Their shares were fully-paid, so far as they knew, but they were very uncomfortable until it was ascertained that a mere matter of form was being carried out. Membership. At the commencement of the year there were 15 honorary and 35 ordinary members, a total membership of 50; during the year three honorary and seven ordinary members resigned, and 10 honorary and 26 ordinary members were elected, and four ordinary became honorary, the membership now being 26 honorary and 50 ordinary members, a total of 76. This increase is very gratifying. Syllabus. Seven meetings were held during the year. 1905. June 26.-Third Annual General Meeting. [There is no occasion to formally settle the list of contributories, if all shares are fully paid up, and provided there will be no return to contributories. In all cases of doubt the liquidator should apply to the Court for directions under Sec. 138 of the Companies Act, 1862.—ED. Acct.] The Nottingham Cbartered Accountants Students' Society. THE fourth annual general meeting of the Society was held at Crowshaw's Café, Angel Row, Nottingham, on Friday, 15th June 1906, at 7 p.m. The President (Mr. W. Gath, A.C.A.) was in the chair, and there were present twenty-one members. The Secretary read the notice convening the meeting, and letters of apology from Mr. W. R. Hamilton, F.C.A., and Mr. T. G. Mellors, F.C.A., for their inability to attend. The following are the REPORT AND ACCOUNTS. The Committee have much pleasure in presenting to the members their fourth annual report. Dec. Chairman, A. Cypher-Blank, C. F. N. Gibbons. Nov. 15.-Mock Shareholders' Meeting at Winchester The Union of Chartered Accountant Student Societies. Several meetings of the Working Union have been held during the year, and its work appears to be of great use to the Students' Societies. The success of the mock shareholders' meetings was due to the excellent set of accounts which was issued by the Working Union. Mr. C. J. Pain, A.C.A., was the Society's representative on the Council of the Working Union for the year 1905-6. Mr. E. H. Palmer, A.C.A., has been appointed the Society's representative for 1906-7. Transactions for 1905. The Society's Transactions are on sale by the Secretary at 2s. 6d. per volume. This compilation is on the same lines as last year, and contains over 500 pages, and lectures delivered to the London, Nottingham, Hull, Northern, and Leicester Chartered Accountants Students' Societies, and will be found of great benefit to students as well as qualified members. |