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Analyze the provided credit card statement summary to calculate the new balance after all March transactions.

Accounting

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Step-by-step solution

6 steps

  1. Calculate the total payments for March.

    Locate the "Credits & Payments" column and identify any payments made in March.
    The only payment listed is on 30/03.

    Total payments=R40,00\text{Total payments} = \text{R}40,00

    The total payments for March were R40,00.

  2. Calculate the new charge for March.

    The new charges are the debits made during March. Sum all the amounts in the "Debits" column for transactions in March.

    New charge=R108,20+R58,00+R159,72+R128,00+R109,32\text{New charge} = \text{R}108,20 + \text{R}58,00 + \text{R}159,72 + \text{R}128,00 + \text{R}109,32 New charge=R563,24\text{New charge} = \text{R}563,24

    The new charge for March was R563,24.

  3. Calculate the new balance on the credit card account after all transactions in March.

    The new balance is provided on the statement. We can also verify it using the previous balance, new charges, payments, and finance charge.
    Previous balance: R839,62
    New charges (from Step 2): R563,24
    Payments (from Step 1): R40,00
    Finance charge: R17,04

    New Balance=Previous Balance+New Charges−Payments+Finance Charge\text{New Balance} = \text{Previous Balance} + \text{New Charges} - \text{Payments} + \text{Finance Charge} New Balance=R839,62+R563,24−R40,00+R17,04\text{New Balance} = \text{R}839,62 + \text{R}563,24 - \text{R}40,00 + \text{R}17,04 New Balance=R1402,86−R40,00+R17,04\text{New Balance} = \text{R}1402,86 - \text{R}40,00 + \text{R}17,04 New Balance=R1362,86+R17,04\text{New Balance} = \text{R}1362,86 + \text{R}17,04 New Balance=R1379,90\text{New Balance} = \text{R}1379,90

    The new balance on the credit card account after all transactions in March is R1 379,90.

  4. Calculate the amount of credit available.

    Credit available is the Credit Limit minus the New Balance.
    Credit Limit: R3 000
    New Balance (from Step 3): R1 379,90

    Credit available=Credit Limit−New Balance\text{Credit available} = \text{Credit Limit} - \text{New Balance} Credit available=R3000−R1379,90\text{Credit available} = \text{R}3000 - \text{R}1379,90 Credit available=R1620,10\text{Credit available} = \text{R}1620,10

    The amount of credit available is R1 620,10.

  5. Find the reference number for the purchase at SPAR.

    Locate "Spar" in the "Description" column and find its corresponding "Ref number".
    The reference number for the purchase at SPAR is 7075061.

  6. Identify the minimum payment amount due and its due date.

    Look at the top section of the credit card statement for "Minimum Due" and "Due Date".
    Minimum Due: R300
    Due Date: 4/04/20
    The minimum payment amount due is R300, and it is due on 4/04/20.

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