Scenario: Thabang had an opening balance on his student account of R2000 credit when the year started. After this, he bought textbooks to value of R1570. As a result of a late payment, interest of R50.75 was debited on Thabang’s account. Later, Thabang’s funder provided R1580 that was credited on his account.

Question

What is Thabang’s account balance after these transactions were completed? 


R3200.75


R2040.75


R1959.25


R1200.75


R5200.75

Answer 1

Thabang's account balance after these transactions were completed is R1959.25.

Calculation:
Opening balance: R2000
Textbooks bought: R1570
Late payment interest: R50.75
Funder credit: R1580

Total debits: R1620.75 (R1570 + R50.75)
Total credit: R1580

Balance = Opening balance - Total debits + Total credit
Balance = R2000 - R1620.75 + R1580
Balance = R1959.25

Therefore, Thabang's account balance is R1959.25.