ExpertMedium2 marksMultiple Choice
ACCA · Question 25 · Preparing basic financial statements
A shopkeeper suspects cash has been stolen from the till. Opening cash balance was $200. Cash sales banked during the week were $4,500. Wages paid in cash from the till were $300. Closing cash balance is $150. Total cash sales recorded on the till roll were $5,000. How much cash is missing?
A shopkeeper suspects cash has been stolen from the till. Opening cash balance was $200. Cash sales banked during the week were $4,500. Wages paid in cash from the till were $300. Closing cash balance is $150. Total cash sales recorded on the till roll were $5,000. How much cash is missing?
Answer options:
A.
$500
B.
$250
C.
$350
D.
$150
How to approach this question
Create a cash account (T-account). Put opening balance and receipts on the debit side. Put payments and closing balance on the credit side. The balancing figure is the stolen cash.
Full Answer
B.$250✓ Correct
Expected closing cash = Opening balance ($200) + Cash received from sales ($5,000) - Cash banked ($4,500) - Cash paid for wages ($300) = $400. The actual closing cash is $150. Therefore, the missing cash is $400 - $150 = $250.
Common mistakes
Forgetting to account for the cash paid out for wages before banking.
Practice the full ACCA FA — Financial Accounting Practice Exam 2
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