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On the 02 July 2019 Maxi Trading transferred R30 000 and R50 000 respectively into a fixed deposit account with Strand Bank. The R50 000 invested will mature on 10 July 2020. The interest earned on both fixed deposits is 8% per annum. The year end is 30 June. Required: Discuss, using the accounting standards, how the above will be treated in the financial statements as at 30 June 2020

On the 02 July 2019 Maxi Trading transferred R30 000 and R50 000 respectively into a fixed deposit account with Strand Bank. The R50 000 invested will mature on 10 July 2020. The interest earned on both fixed deposits is 8% per annum. The year end is 30 June. Required: Discuss, using the accounting standards, how the above will be treated in the financial statements as at 30 June 2020

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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On the 02 July 2019 Maxi Trading transferred R30 000 and R50 000 respectively into a fixed deposit account with Strand Bank. The R50 000 invested will mature on 10 July 2020. The interest earned on both fixed deposits is 8% per annum. The year end is 30 June. Required: Discuss, using the accounting standards, how the above will be treated in the financial statements as at 30 June 2020
Transcribed Image Text:On the 02 July 2019 Maxi Trading transferred R30 000 and R50 000 respectively into a fixed deposit account with Strand Bank. The R50 000 invested will mature on 10 July 2020. The interest earned on both fixed deposits is 8% per annum. The year end is 30 June. Required: Discuss, using the accounting standards, how the above will be treated in the financial statements as at 30 June 2020
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