Can someone help me to solve this accounting problem please

Can Someone Help Me To Solve This Accounting Problem Please

Answers

Answer 1

The amount of cash stolen in the year ended 2005 is $4,640.

What is the amount of cash stolen in the year ended 31 December 2005?

We will calculate the total sales:

= Balance b/d + Takings - Balance c/d

= $13,000 + $115,846 - $25,866

= $103,980

The cost of goods sold is:

= Total sales × (1 - Gross profit rate)

= $103,980 × (1 - 0.30)

= $72,786

The purchases is computed as:

= Cost of goods sold + Inventory at 31 December 2005 - Inventory at 1 January 2005

= $72,786 + $9,000 - $18,000

= $63,786

The cash stolen will equals to:

= Total sales - Purchases - Trade Receivables + Trade Payables + Expenses - Rent Prepaid + Rates Owing - Equipment (at valuation) - Drawings - Miscellaneous expenses

= $103,980 - $63,786 - $9,000 + $7,000 + $7,320 - $10,650 + $230 - $14,100 - $5,000 - $2,654

= $4,640.

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