ExpertEasy2 marksShort Answer
ACCA · Question 21 · Preparing basic financial statements
Section A
A sole trader suspects an employee has been stealing cash from the till.
Opening cash balance: $500
Cash sales for the period: $15,000
Cash banked: $12,000
Cash paid for expenses: $1,800
Closing cash balance in the till: $400
How much cash is missing? (Enter numbers only)
Section A
A sole trader suspects an employee has been stealing cash from the till.
Opening cash balance: $500
Cash sales for the period: $15,000
Cash banked: $12,000
Cash paid for expenses: $1,800
Closing cash balance in the till: $400
How much cash is missing? (Enter numbers only)
How to approach this question
Construct a cash account. Add opening balance and receipts. Subtract payments and closing balance. The difference is the missing cash.
Full Answer
Total cash available = Opening balance ($500) + Cash sales ($15,000) = $15,500.
Accounted for cash = Banked ($12,000) + Expenses ($1,800) + Closing balance ($400) = $14,200.
Missing cash = $15,500 - $14,200 = $1,300.
Common mistakes
Forgetting to include the opening or closing balance in the calculation.
Practice the full ACCA FA — Financial Accounting Practice Exam 1
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