African Bank
Questionable Accounting

I bought furniture at furniture city on account two years ago, I have made a point of letting them know i don't want their insurance as i already have household insurance which is more than adequate.

They worked out my premium of R234.50, subsequently i have noticed that they have taken my premium and then added the following charges monthly.

This is the statement:

Account for period - 2013/09/08 TO 2013/10/07

2013/09/08 2013/09/08 Opening Balance R2, 043.17

2013/09/30 2013/09/30 Payment - R234.50 Balance - R1, 808.67

2013/10/07 2013/10/07 Insurance R15.35 Balance - R1, 822.14

2013/10/07 2013/10/07 Interest R41.10 Balance - R1, 863.24

2013/10/07 2013/10/07 Service Fee R50.00 - Balance R1, 913.24

2013/10/07 2013/10/07 VAT on Service Fee R7.00 Balance R1, 920.24

So it works out like this:

Opening balance R2, 043.17
Installment R234.50
Closing balance R1, 808.67

Then the following month they add the following to the closing balance of last month:

Opening balance R1, 808.67
Add Insurance R15.35
Add Interest R41.10
Add Service Fee R50.00
Add VAT on Service Fee R7.00

New opening Balance is R1, 920.24

My installment is worked out to cover the base plus interest.