I'm helping a friend complete the SA 100 for her husband who died suddenly. He was a sole trader and therefore the business ceased on his date of death (she has no intention of even trying to 'take over' the business). He was using the 'cash basis' accounting. On the date of his death there were some outstanding invoices, both sales and purchases, that have yet to be paid (these don't amount to much money) . Should a provision be provided for in the 'cash basis' accounts for both the income and expenses owing (as with traditional accounting), or does this 'income' this now become part of his estate and the 'expenses' therefore need to be paid from his estate? So, only the 'income' actually received and 'expenses' actually paid up to the date of death be included on his final tax return.
Thank you in advance for any help.