Q.From the following Cash and Bank Summary for the year ended 31.3.2023, ascertain the Drawings made by the proprietor during the year, drawings not having been separately recorded: Opening Cash balance (1.4.2022) ₹8,000. Receipts during the year: Cash Sales ₹60,000; Received from Debtors ₹1,50,000; Additional Capital introduced ₹10,000. Payments during the year: Paid to Creditors ₹1,20,000; Business Expenses ₹35,000; Purchase of Furniture ₹15,000. Closing Cash balance (31.3.2023) ₹18,000.

Since every receipt and payment except drawings is known, along with the opening and closing cash balances, drawings can be recovered as the one missing figure that makes the cash summary balance.

Cash and Bank Summary for the year ended 31.3.2023

Working:

Total receipts side = 8,000 + 60,000 + 1,50,000 + 10,000 = ₹2,28,000 …

Alternative working: first find total payments required to reduce the opening-plus-receipts total to the closing balance (2,28,000 − 18,000 = 2,10,000), then deduct the known payments (1,70,000) from that: 2,10,0 …

A frequent mistake is forgetting to include the additional capital introduced as a receipt, which understates total receipts and consequently understates the drawings figure found as the balancing …