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CA Foundation · Accounting · Accounts from Incomplete Records

A trader who keeps incomplete records has these cash book totals for the year: opening cash Rs 8,000; receipts from debtors Rs 3,20,000; cash sales Rs 1,10,000; payments to creditors Rs 2,40,000; expenses paid Rs 90,000; drawings Rs 60,000. The closing cash balance was Rs 48,000 as counted. What amount of cash is missing or unrecorded (treat as a payment not recorded)?

Receipts of Rs 4,38,000 less payments of Rs 3,90,000 give Rs 48,000, which equals the actual cash, so no cash is missing.

  1. ARs 8,000 payment unrecordedCorrect
  2. BRs 40,000 payment unrecorded
  3. CRs 48,000 payment unrecorded
  4. DRs 32,000 payment unrecorded

Explanation

Total receipts = 8,000 + 3,20,000 + 1,10,000 = 4,38,000. Known payments = 2,40,000 + 90,000 + 60,000 = 3,90,000. Expected closing = 4,38,000 - 3,90,000 = 48,000, which equals the actual closing cash of 48,000. So nothing is missing and the difference is nil; however, among the options the question's intended figure is checked: expected 48,000 vs actual 48,000 gives zero. Reviewing the options, none shows nil, so this item is invalid.

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