Question

Lasting Impressions Co. records all cash receipts on the basis of its cash register tapes. Lasting Impressions Co. discovered during April 2012 that one of its sales clerks had stolen an undetermined amount of cash receipts when she took the daily deposits to the bank. The following data have been gathered for April:

Cash in bank according to the general ledger	9500
Cash according to the April 30, 2012, bank statement	20600
Outstanding checks as of April 30, 2012	7300
Bank service charge for April	100
Note receivable, including interest collected by bank in April	11300

No deposits were in transit on April 30.

Determine the amount of cash receipts stolen by the sales clerk.

Answer 1

Answer:

Determine the amount of cash receipts stolen by the sales clerk:

Particulars	Amount
Cash in the bank according to the general ledger	9,500
Less: Bank service charge	(100)
Add: Outstanding checks	7,300
Add: Note receivable, including interest collected by bank	11,300
Cash in the bank according to the general ledger after above adjustment	28,000
Less: Cash according to the bank statement	20,600
Cash receipts stolen by the sales clerk	7,400

Therefore, the sales clerk stolen the cash receipts of 7,400.