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Prepare working paper showing how much the cashier abstract
Course:- Accounting Basics
Reference No.:- EM131131072




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Assignment

The Patricia Company Pty Ltd had a poor internal control over its cash transactions. Facts about its cash position at 30 November 19X0 were as follows:

The cash book showed a balance of $18901.62, which included undeposited receipts. A credit of $100 on the bank's records did not appear on the books of the company. The balance per bank statement was $15500. Unpresented cheques were #62 for $116.25, #183 for $150, #284 for $253.25, #8621 for $190.71, #8623 for $206.80, and #8632 for $145.28.

The cashier abstracted all undeposited receipts in excess of $3794.41 and prepared the following reconciliation:

Balance per books, 30 November 19X0 $18901.62

Add unpresented cheques:

8621 $190.71
8623 206.80
8632 145.28
$ 442.79
$19344.41
Less undeposited receipts 3794.41
Balance per bank, 30 November 19X0 $15500.00
Deduct unrecorded credit 100.00
True cash, 30 November 19X0 $ 15450.00

Required:

a)Prepare a working paper showing how much the cashier abstracted.
b)How did she attempt to conceal her theft?
c) Using only information given, name two specific features of internal control that were apparently lacking.




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