CMA Intermediate · Financial Accounting · Financial Statements from Incomplete Records
A shopkeeper's cash summary shows opening cash ₹20,000, total receipts ₹5,00,000, payments already recorded ₹4,20,000 and closing cash ₹35,000. No other cash transactions took place. What is the amount of unrecorded payments (such as expenses) to be inserted in the Cash Account?
The unrecorded payments are ₹65,000. Opening cash plus receipts gives ₹5,20,000; after deducting the closing cash of ₹35,000, total payments were ₹4,85,000. Subtracting the recorded payments of ₹4,20,000 leaves ₹65,000 as the balancing figure.
- A₹25,000
- B₹45,000
- C₹65,000Correct
- D₹1,35,000
Explanation
Cash available = 20,000 + 5,00,000 = 5,20,000. Less closing cash 35,000 gives total payments of 4,85,000. Less recorded payments 4,20,000 leaves 65,000 unrecorded. Ignoring opening cash gives ₹45,000.
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