Collectors (Pty Limited

Several Collectors (Pty Limiteds customers had for one reason or another duplicated payment with the result that their accounts were in credit.

In some instances, it was unable to trace the customer and refund the overpayment. The company illegally, squared the accounts of these customers by transferring their credit balances to its sales account in its books.

Required:

Consider whether the amounts transferred by Collectors (Pty) Limited should be included in gross income. (10)