Tomato Tomato carries on a business of tomato farming. Its financial year ends on the...
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Accounting
Tomato Tomato carries on a business of tomato farming. Its financial year ends on the last day of February. In January 2018 Tomato sold, and delivered, tomatoes to a tomato-sauce producer for R25 000. The amount due was settled as follows: - R15 000 being paid on delivery (on 29 January 2018), and - R10 000 balance being paid six months later (on 29 July 2018). (4)
Discuss, 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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