I want to borrow cash from the CC ( I am the sole member ).
Just for discussion, lets say R 100 k.
How do I process this ?
Assuming I need to :
DR Bank Account.
CR Short Term Loan Account ?
What rate of interest do I use - the 'official' SARS rate of 7% ?
Is interest calculated once off on the capital amount, or calc and compond monthly ?
Where do I show the interest in the books each month : DR Interest Received and CR Short Term Loan Account ?
As the rate of 7% is the same as the SARS rate for low-interest loans, must it ( or the fringe benefit ) be shown on the members IRP5 ?
If so, what codes and what amounts ?
Or is it only to appear on the members personal income tax forms when filed ?
Or is it a case that if the interest rates are both the same (7%) that there is therefore no fringe benefit, and it therefore does not need to be added to the IRP5 or the income tax form ?