[Question] Trust assets

[taxacc]

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?

[Dave A]

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?)

[padjakkels]

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.