Question

Quick Traders deposited R91 200 into a fixed deposit account with Help Bank on 30 September 2018, at an interest rate of 9.5% per annum. An extract from the pre-adjustment trial balance for the year ended on 31 May 2019, reflects an amount of R4 816 for interest on fixed deposit.

The amount for interest on fixed deposit to be shown in the statement of profit or loss and other comprehensive income for the year ended 31 May 2019 will be?

Answer 1

$$\frac{8}{12}\times0.095\times91200=5776$$

$$4816-5776=-960$$