Question
Cassilk is a member of nationwide purchasing cooperative, Luxury Fibre Wholesalers. Each year Cassilk is authorized to a bonus based on the aggregate amount of
Cassilk is a member of nationwide purchasing cooperative, Luxury Fibre Wholesalers. Each year Cassilk is authorized to a bonus based on the aggregate amount of its purchases of trading stock and related supplies from Luxury Fibres Wholesalers. The bonus is credited, approximately 6 months in arrears. It is never paid in cash nor is it refundable in cash should the membership of the cooperative stop. In this respect, the accounting records for Cassilk show:
Bonus receivable account.
Balance at 1 July 2019 232,000 Dr.
Credit granted (215,000) Cr.
Provision for credit to come 223,000 Dr
Balance 30 June 2020 240,000 Dr
4 Is the bonus receivable ($223,000) and/or the credit granted of $215,000 assessable income for the year ended 30 June 2020?
5. If either amount is not assessable income, how is it to be dealt with for taxation purposes?
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