Melton Makushu Melton Makushu was sued by his creditor for R6 000 being the value of goods purchased by him from the creditor. The date was five years old, and was successful in pleading in prescription. The R6000 was shown in Melton Makushu's books as a creditor, but now that there has been a judgement, his bookkeeper would like to debit the creditor's account. The credit entry will be made either to his capital account or to his statement of comprehensive income. Required: Consider the normal tax consequences to Melton Makushu of the R6000 arising out of the above event.

Melton Makushu Melton Makushu was sued by his creditor for R6 000 being the value of goods purchased by him from the creditor. The date was five years old, and was successful in pleading in prescription. The R6000 was shown in Melton Makushu's books as a creditor, but now that there has been a judgement, his bookkeeper would like to debit the creditor's account. The credit entry will be made either to his capital account or to his statement of comprehensive income. Required: Consider the normal tax consequences to Melton Makushu of the R6000 arising out of the above event.

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter7: Deductions And Losses: Certain Business Expenses And Losses

Section: Chapter Questions

Problem 30P

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