ABC Bank transferred R11 000 for an interest on fixed deposit of R10 000 matured. The full amount was credited to the fixed deposit, account the error? which account should be debited or credited?

The error is that the full amount of R11 000 was credited to the fixed deposit account instead of just the interest amount.

To correct this error, the fixed deposit account should be debited by R1 000 (the excess amount credited) and the interest income account should be credited by R1 000.

The journal entry to correct this error would be:

Fixed Deposit Account Dr. R1 000
Interest Income Account Cr. R1 000