Fred, a Corrupt Trustee, Dishonestly Withdraws £10,000 of Trust Funds

Fred, a corrupt trustee, dishonestly withdraws £10,000 of trust funds. He pays the funds into a joint current bank account which he operates with his wife, Gladys. At the time the £10,000 was paid in, the account was £3.000 overdrawn. Two days later, Gladys's salary of £2,000 is paid into the account, so that it now stands £9,000 in credit.
Fred and Gladys have just been declared bankrupt. Which of the following statements about the rights of the beneficiaries to any money in the account is true?

A) The beneficiaries of the trust can claim the whole £9,000 in the account because this is less than the sum which Fred stole from the trust.
B) The beneficiaries of the trust can claim £4,500 from the account, representing Fred's entitlement to funds held in the account.
C) The beneficiaries of the trust can claim £7,000 from the account because this represents the lowest intermediate balance.
D) The beneficiaries of the trust can make no claim to any money in the account. The bankruptcy of the account holders means that they are limited to making a claim with all the other creditors against Fred's trustee in bankruptcy.