Question
Question 16 of 27 Extract of pre-adjustment trial balance of Kumkani Traders as at 30 September 20.20 Debit Credit R R Capital (1 October 20.19)
Question 16 of 27
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 R50 000 was made on 1 April 20.20. Interest on this investment is paid annually.
Which one of the following alternatives represent the correct amount that must be disclosed as interest on mortgage for the year ended 30 September 20.20?
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