There is $100 in the cash till at the year end at F, but the accountant has discovered that some cash has been stolen.
At the beginning of the year there was $50 in the cash till and receivables were $2,000. Total sales in the year were $230,000. Accounts receivable at the end of the year were $3,000. Cheques banked from credit sales were $160,000 and cash sales of $50,000 have been banked.
How much cash was stolen during the year?
Sales are made up of cash sales and credit sales.
Credit sales: if Drs b/f = $2,000, C/f = 3,000 and cheques received from customers = 160,000, credit sales must have been $161,000 (enough to increase Drs by 1,000 and generate cheques of 160,000.
If credit sales = $161,000 and total sales = 230,000, cash sales must be the difference, $69,000.
Only 50,000 was banked, leaving 19,000 received and either in the till or stolen.
The till balance increased by $50, so the rest $18,950 must have been stolen.
Thank you so much Sir Ken. Your way of explaining is just wonderful I must say.
Hi kindly advise where can I get these questions to practice on all I have is the 2014?
My exam is on the 24th May 2017
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