Anna had an opening cash balance of £500, she received £28,000 cash in the period, paid £15,000 into the bank, paid staff wages of £3,200, paid sundry expenses of £800, paid the window cleaner £200, paid a repair man £2,000 and had £800 left on hand at the end of the year.
Anna helped herself to cash when she was short. Which of the following is correct?

Question

Quizplus · Accepted Answer

To find the amount Anna took as drawings, we calculate the total cash flow and compare it with the opening and closing balances. Starting with £500 and receiving £28,000 gives £28,500. Payments made include £15,000 into the bank, £3,200 for wages, £800 for sundry expenses, £200 for the window cleaner, and £2,000 for a repair man, totaling £21,200. Subtracting this from £28,500 leaves £7,300. With £800 left on hand, the difference of £6,500 represents the cash Anna took as drawings.

Anna Had an Opening Cash Balance of £500, She Received