HomeHome SearchSearch MenuMenu Our productsOur products

Part 2: A story of death and taxes

by , 15 August 2013
Last week I shared a discussion in a LinkedIn group that I came across. Basically a member of the LinkedIn group asking his fellow accounting enthusiasts about how to report money that an insurance company pays to his client.

To read the full article, click here.
I asked you to send your opinions and thoughts. My inbox was overwhelmed with your emails.

Let's have a look at your feedback...

An easy way to get your Provisional Tax calculation done 100% correctly by 31 August
Order your copy of the Provisional Tax 101 report and SAVE 25% if you order in the next 5 days.
Find out how…

How did our readers suggest Jacob deals with his accounting records?

Tankiso said: I think Jacob should record it as liability (payment in advance). He should recognise the revenue or loss when the funeral home performs services.

Dave said: The insurance company receives the premiums. The transaction is for the insurance company's record. Jacob's Funeral Service provider does not have to make a note or record of the premium contributed.

Upon death of the premium contributor, Jacob's Funeral Service will provide the funeral service, upon the authorisation, by the Insurance Company to provide a service. The funeral provided by service provider, will charge to the Insurance company (that had received the premiums) for payment by the service provider. This will be recorded as revenue in the books of the Funeral Service' provider.

Without this one Vat document,
Your business could lose out
On R1.07 million!
Click here


Look out for the next time I request feedback from you. You never know – it could be your wise words published for our thousands of readers to appreciate.

Until next time,
Philip Rosenberg
Managing editor, Practical Accountancy Loose Leaf

PS. If you have an accounting question that you need answered immediately, send it to the Accounting helpdesk and get an answer in 72 hours from one of our other experts. Not a member and want to access this service? Click here.

Related articles

Related articles

Watch And Learn

Related Products


Recommended for You 

  Quick Tax Solutions for Busy Taxpayers – 35 tax answers at a glance

Here are all the most interesting, thought-provoking and common tax questions
asked by our subscribers over the last tax year – everything from A to Z!

To download Quick Tax Solutions for Busy Taxpayers – 35 tax answers at a glance click here now >>>
  Employees always sick? How to stop it today

Make sure you develop a leave policy to regulate sick leave in your company.

BONUS! You'll find an example of the leave policy and procedure in this report.

To download Employees always sick? How to stop it today click here now >>>
  Absenteeism: Little known ways to reduce absenteeism

This FREE e-report will tell you how you can reduce absenteeism in your workplace while avoiding the CCMA and without infringing your employees' labour rights.

To download Absenteeism: Little known ways to reduce absenteeism click here now >>>
  7 Health & safety strategies to save you thousands

Don't let a health and safety incident cost you one more cent. Implement these seven
strategies in your company today.

To download 7 Health & safety strategies to save you thousands click here now >>>