The Missing ₹2,300 and the Flickering UV Lamp
At 9:40 p.m. you close the till at a neighbourhood organised store. The opening float was ₹2,000. The POS reports cash sales of ₹18,450 and card sales of ₹3,200. You count ₹18,150 in the drawer, including one ₹500 note that looks and feels different: the security thread is printed rather than embedded. The cashier, Ravi, says a customer bought groceries worth ₹640 and paid with a ₹500 note, a ₹100 note and ₹40 in coins. He says he checked the ₹500 note under the UV lamp, but the lamp has been flickering for a week. The store's cash shortage policy says any shortage above ₹200 is recorded and recovered from the cashier after an inquiry. The bank deposit is due tomorrow morning.
1. Reconcile the till. State the expected cash, the counted cash, the shortage or excess, and whether the suspected note explains it.
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Reconciliation
- Expected cash = opening float + cash sales = ₹2,000 + ₹18,450 = ₹20,450.
- Counted cash = ₹18,150.
- Shortage = ₹2,300 as counted.
- If the ₹500 note is counterfeit, it is worth zero. Genuine cash counted = ₹18,150 − ₹500 = ₹17,650. The real shortage then becomes ₹20,450 − ₹17,650 = ₹2,800.
Does the note explain it? No. At most the suspected note accounts for ₹500 of the loss. If it is fake, the store still has ₹2,300 of genuine cash missing (or ₹1,800 if you keep the fake note at face value for the moment). The note is a separate control failure, not the whole answer.
Next checks before blaming anyone
- Re-count the drawer with a second person.
- Check the POS for void, refund and discount transactions after 9:30 p.m.
- Check whether the cashier used the till for another staff member during the rush.
- Check the CCTV around the ₹640 sale and the change given.
- Check the opening float count and any petty-cash payout.
Conclusion: record the shortage, but do not treat the fake note as the explanation. The reconciliation shows two issues: a counterfeit-acceptance problem and an unexplained cash shortage.
2. What should be done with the suspected note and with Ravi? Explain the process and the fair-labour considerations.
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The suspected note
- Do not return it to the customer and do not put it back into circulation.
- Isolate it in an envelope, note the serial number, date, time, till number and cashier, and inform the manager.
- Preserve CCTV of the transaction. Report to the bank and follow the store's written procedure; if the store's policy requires a police report, the manager should make it.
- Do not mark or damage the note more than necessary; handle it minimally.
Ravi and fairness
- Do not accuse him publicly. A shortage is not proof of dishonesty, and the UV lamp has been faulty for a week, which is a store control failure.
- Hold an inquiry: count with a witness, review the POS log and CCTV, and give Ravi a chance to explain before any recovery decision.
- Recovery: follow the store policy, but recovery should be considered only for a proven shortage caused by the cashier. If the process was faulty, the store should bear the loss and fix the process.
- Support: retrain Ravi on note checks, replace the lamp, and record the outcome. If the shortage is unexplained, apply a fair and consistent rule, not a sudden penalty.
Judgement: the note is evidence, not a weapon. Fair process protects the store from a labour dispute and from repeating the same loss.
3. Identify three likely causes of the shortage and one control for each. Which control should be fixed first and why?
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Likely causes and controls
- Change-making error. Control: count change aloud, one customer at a time, and keep the drawer organised by denomination.
- Unrecorded refund or void. Control: manager PIN for refunds, receipt required, and a daily review of void/refund reports.
- Counterfeit acceptance. Control: working UV lamp, counterfeit pen, training, and a rule to refuse badly damaged or suspicious notes politely.
- Till sharing during the evening rush. Control: one cashier per drawer, shift handover count, and a second till opened by a supervisor if needed.
- Skimming or theft. Control: CCTV over the till, random cash audits, and a deposit log signed by two people.
- Float error at opening. Control: dual count at opening and closing, recorded on a signed sheet.
Priority: fix the lamp and the single-drawer rule first. They are cheap and directly explain both the fake note and part of the shortage.