The March 2025 bank statement of Tong’s Toyworld has just been received from its bankers. The following information is available.

1. The March bank column totals of the cash receipts and cash payments journals are, respectively, \($21\) 546 and \($24\) 108 before taking into account any of the items appearing on the bank statement.

2. The following items appear on the March bank statement but not in the cash journals for the same month.

• A deposit on 1 March 2025 of $2100.

• Cheque no. 253 for \($248.20\) and no. 257 for $417.40.

• A debit of \($300\) to correct an error.

• A dishonoured cheque (received from K. Matthews) for $294.

• A deposit of \($400\) by owner Penelope Tong to her personal bank account held at the same bank.

• Rent of \($420\) from a tenant who sublets space was deposited directly.

• A standing transfer order of \($350\) for insurance premiums.

• Interest on overdraft \($48\), account fees $30.

3. The following items appear in the cash journals but not on the bank statement:

• Cheque no. 284 was stopped for payment because the amount written on the cheque was wrong. The cheque was given to NW Minerals Ltd for goods, $1500.

• Cheque no. 288 for \($632\) and no. 293 for $342.

• A deposit on 31 March for $1720.

• A post-dated cheque no. 289 for \($1000\) given to Simpson Pty Ltd.

4. Additional information:

• On 31 March 2025 the bank statement showed a debit balance of $2342.80.

• Cheque no. 193 for \($60\) was drawn on 17 December 2023 as a donation to the Scouts Association (cheque is now a stale cheque).

• Cheque no. 285 for \($228\) appears twice on the bank statement.

• Cheque no. 296 was entered correctly as \($360\) in the cash journal but appeared in the bank statement as $560.

5. Bank reconciliation statement on 28 February 2025 is below.

Required

(a) Prepare and balance the Cash at Bank account in the general ledger for March 2025.

(b) Prepare the bank reconciliation statement at 31 March 2025.

(c) What conclusions can be drawn regarding control over cash payments after preparation of the reconciliation statement?

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Balance as per bank statement $ 839.20 Dr Add: Cheques not debited by bank: No. 193 $ 60.00 253 248.20 257 417.40 261 719.20 Bank error deposit to incorrect account 300.00 1744.80 2584.00 Less: Outstanding deposit 2100.00 Balance as per Cash at Bank account $ 484.00 Cr