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Jane Doe Jane Doe invested R2 000 000 in a 6.5% fixed-deposit investment on 1...

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Accounting

Jane Doe Jane Doe invested R2 000 000 in a 6.5% fixed-deposit investment on 1 February 2018 with a financial institution for 12 months. Under the fixed deposit contract, the investor is entitled to claim payment of the interest only on the completion of the 12-month period. (6)

Required: Discuss, for the scenario, whether the amounts referred to are gross income in the hands of the respective recipients. For amounts that have accrued to a taxpayer, the date of accrual must also be provided.

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