After a year-end inventory count, the value of trading inventory on hand was R123 450.

Additional information

(a) On 1 April 20.20 Kumkani Traders bought a factory building by means of a mortgage, from Ginsberg Bank, that bears interest at a rate of 10.05% per annum compounded annually. The loan is redeemable in 20 annual instalments of R22 980. The instalments are in arrears. Interest for the current year must still be provided for.

(b) The fixed deposit investment of R80 000 was made on 1 April 20.20. Interest on this investment is paid annually.

Use the information in the pre-adjustment trial balance and the additional information to calculate the interest on fixed deposit to be disclosed in the statement of profit or loss and other comprehensive income for the year ended 30 September 20.20.

Instructions:

1. Use a full stop to indicate any decimals (eg: 1000.01)

2. Round off to the nearest Rand (eg: 50.56 is 51)

3. Only show the amount, do not show the R (eg: 12141.72)