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Hbc2301:Project Management Question Paper
Hbc2301:Project Management
Course:Bachelor Of Commerce
Institution: Meru University Of Science And Technology question papers
Exam Year:2013
QUESITON ONE – (30 MARKS)
(a) Outline the principal duties of a deceased person personal representative. (4 Marks) (b) Discuss the fundamental requirements of a valid will. (3 Marks) (c) Discuss various ways in which a trust may be created and how such trust may be terminated. (4 Marks) (d) Citing a customary practice with which you are familiar, critically evaluate how intestacy was handled. (4 Marks) (e) How does the Matrimonial Properties Bill (2013) affect section 42 of law of succession Act Cap 160 laws of Kenya? (5 Marks) (f) Discuss the remedies available to a legatee who fails to obtain a bequest as directed in a will. (4 Marks) (g) Onyango dies intestate leaving his two wives Atieno and Akinyi whom he married under a system that permits polygamy. Anyango, his first wife had predeceased him leaving two children, Suswa and Supra who are still a life. Atieno has three surviving children: Otieno, Pamela and Miguna while Akinyi has no children.
Onyango’s estate consists of: ? Personal effects Shs.400,000 ? Household effects Shs.1,000,000 ? Motor vehicle Shs.2,300,000 ? Residue Shs.2,000,000
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Required
A statement showing how Onyango’s estate will be distributed. (6 Marks)
QUESTION TWO – (20 MARKS)
Kingo’ri died as a result of a road accident on December 2012. His estate at death consisted of the following;
Sh.
Free house 1,800,000 Furniture and other personal effects 240,000 Ornamental collections 24,000 24000 ordinary Shares in Kenya Co. Ltd 420,000 Shs.100000 nominal 10% treasury stock (2020) 184,000 Amount due from motor insurance Co. 228,000 Debt due from Paul 100,000 Funeral and testamentary expenses 40,000 Cash in hand and at bank 300,000
Through his will, Kingo;ri forgave his brother in law, Paul al debts due at the date of death and made the following bequests.
1. To my wife Grace, my freehold house, furniture and other personal effects not otherwise bequeathed. 2. To my brother William, the sum of Sh.40,000 3. To my good friend Peter Mwaro, the sum of Shs.40,000 4. To each of my sons Maina and Kamau the sum of Shs.50,000. 5. To my daughter Zippy, my holding of Shs.100,000 nominal 10 ½% treasury stock (2020) and Sh.40,000 to my nephew Richard payable out of my holding of 9% treasury stock 2014. 6. To my niece Sarah, my holding of 3000 ordinary shares in Kenya Co. Ltd. 7. To my cousin Kenneth, my motor car. 8. To my grandson Jonathan, my ornament collection 9. To my neighbor Peter Mwaro, the sum of Sh.30,000 10. The residue of my estate, to provide income for my wife for life and thereafter to may grandchildren in equal shares
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You further ascertain the following: ? William and Kamau both predeceased Kingo’ri, but their respective children Richard and Jonathan both survived him. ? Peter Mwaro, a life long friend of Kingo’ri, has purchased the house neghbouring that of King’ori and Grace shortly before the execution of the will. ? There is no such investment as 10 ½% treasury stock 2020. The rate referred to in Kingo’ris’s will is believed to be a typing error not previously noticed. ? Kingo’ri had sold his entire holding of 9% treasury stock 2014 in November 2012. ? Kingo’ris car was totally wrecked in the accident of December 2012. The sum of Shs.228,000 paid by the Insurance Company represents the agreed value of the motor van at that date. ? In addition to Kamau’s son, Jonathan, there were five other grand children living at the date of Kingo’ri’s death. ? The Kenya Co. Ltd changed the par value of the shares from Sh.10 to Sh.5 prior to the death of Kingo’ri. However this had no significant effect on the market price of the shares.
Required:
(a) Statement showing the distribution of Kingo’ri’s Estate. (15 Marks) (b) Explain the treatment of the bequest of the following beneficiaries i. Peter Mwaro ii. Zipporah iii. Richard iv. Sarah v. Kenneth (5 Marks)
QUESTION THREE – (20 MARKS)
(a) Discuss how valid will may be revoked effectively. (3 Marks) (b) Pursuant to section 31 of the law of succession Act Cap 160 laws of Kenya, a gift made in contemplation of death shall be valid, despite that there has been no complete transfer of legal title. Discuss the conditions which must be fulfilled for such a gift to be valid and effective. (5 Marks) (c) Kifo died on 30th September 2012 and left his estate as follows: Sh Household furniture 180,000 Cash in hand 4,000 Cash at Bank 250,000
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10,000 ordinary shares of Sh20 Each in KFC Ltd valued at Sh.30 300,000 Investment at 5% on fit property 400,000 Securities (interest payable on 30th June) Share in Kifo and Co. Ltd (valued at death) 1,200,000 Sundry debtors 400,000 Sundry liabilities 15,000 Funeral expenses 10,000
The following additional information is available: 1. A legacy of Sh.40,000 was bequeathed to his executor and paid on 28th January 2013. 2. The residue of the estate was left in trust for his infant son. 3. The household furniture was sold on 10th October 2012 for Sh.200,000 4. The shares were sold on the same date at Sh.29 ex-div; a dividend being received on 20th January 2013 at 10% for the year ended 31 December 2012. 5. Interest on investment in FH property securities was received on 31 December 2012, on which date the shares in Kifo & Co. Ltd were received with interest at 5% per annum. 6. The liabilities and funeral expenses were discharged on 20th December 2012 on which date Sh.20,000 of the debts due were received, the balance being unpaid at the date of preparation of accounts.
Required
i. Prepare Journal entries to record the above transactions. ii. Prepare the Estate cash book, Estate income account and Estate capital accounts. (10 Marks) iii. Prepare the balance sheet of Kifo; Deceased as at 31 January 2013. (2 Mrks)
QUESTION FOUR – (20 MARKS)
Citing relevant examples, write notes on the following headings as provided by the law of succession Act Cap 160 laws of Kenya.
(a) Persons making wills and freedom of testation. (4 Marks) (b) Wills caused by fraud, coercion, impunity and mistake (4 Marks) (c) Failure of testamentary dispositions (4 Marks) (d) Presumption of survivorship (4 Marks) (e) Grant of probate (4 Marks)
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