Page 32 - Chapter 22 - Foreign Exchange (Cont.)
P. 32
Solution: s8(4)(a)
Year ended 28 February 2014
Selling price of stock [FC90 000 × 6,60 (spot rate)]
Sales — gross income (s 1) R594 000
Exchange difference on debt owing to A Ltd (gain)
Debt due to A Ltd: FC90 000 × (6.90 – 6,60) R27 000
Bad debts written off [FC90 000 × 6,90] s 11(i) (R621 000)
Total inclusion in 2013 year of assessment Rnil
Year ended 28 February 2015
Debt recovered [FC90 000 × 0.50 × R7] of R315 000 can be divided as
follows:
S 8(4)(a) recoupment [R621 000 × 0.5] – consisting of original debt of
R297 000 (R594 000/2) and recoupment of half of the exchange difference
of R13 500 (R27 000/2) R310 500
Exchange difference on payment (s 24I) [FC90 000 × 0.5 × (7,00 – 6,90)]
R4 500
