Hi, a trust inherited property to the value of R25m. What is the book entry, debit property and credit ? is it capital acc or trustee loan acc?
Hi, a trust inherited property to the value of R25m. What is the book entry, debit property and credit ? is it capital acc or trustee loan acc?
From a strict business approach - You'd be debiting an asset account (representing the take-on value of the property) and crediting an income account (inheritance received perhaps?)
Participation is voluntary.
Alcocks Electrical Services | Alcocks Pest Control & Entomological Services | Alcocks Hygiene Services
Correct to debit the asset account. But the credit leg would be an capital item or trust funds (inheritance received). I would rather take it directly to trust funds than show it as an income as its not taxable as an income, it will only confuse SARS unnessary.
Did you like this article? Share it with your favourite social network.