QUESTION 1 The bank reconciliation statement of Darven Ltd for April 2021 is set out below: 1) Bank reconciliation statement on 30 April 2021: CR Balance as per bank statement Add: Outstanding deposit $ 38 924.00 Cr 3066.00 41 990.00 $ Less: Unpresented cheques not debited by bank: No. 0736 0741 0747 0750 DR Balance as per Cash at Bank account 209.00 344.00 551.00 433.00 (1 537.00) 40 453.00 Dr $ May 2 2) The cash receipts and cash payments journals for the period ending 31 May, 2021 were as follows: Darven Ltd. Cash Receipts Journal Darven Ltd Cash Payments Journal Date Particulars $ Date Cheque # $ May 1 Deposit 6373.00 0756 1595.00 May 6 Deposit 934.00 May 4 0757 27 323.00 May 7 0758 438.00 May 11 Deposit 972.00 0759 977.00 0760 1 295.00 May 18 Deposit 819.00 May 14 0761 900.00 May 21 Deposit 3 817.00 May 17 0762 1811.00 May 20 0763 3991.00 May 25 Deposit 692.00 May 27 0764 2004.00 May 28 Deposit 2 667.00 May 31 0765 1375.00 May 31 Deposit 593.00 TOTAL 41 709.00 TOTAL 16 867.00 3) Darven Ltd's Bank statement at 31 May, 2021 is shown on the following page: Credit Balance 38 924 CR 3 066 WAT BANK WICHTOWN Statement of Account - Darven Ltd. Date Particulars Debit 2021 Brought forward May 1 Deposit Cheque 0736 209 Cheque 0750 433 2 Deposit 5 Cheque 0757 27 323 Investment interest 6 Deposit 7 Dell Insurance 410 41 348 CR 47 721 CR 6 373 375 934 20 773 CR 21 707 CR 21 297 CR Credit Balance 38 924 CR 3 066 41 348 CR 47 721 CR 6373 375 934 20 773 CR 21 707 CR 21 297 CR WAT BANK WICHTOWN Statement of Account - Darven Ltd. Date Particulars Debit 2021 Brought forward May 1 Deposit Cheque 0736 209 Cheque 0750 433 2 Deposit 5 Cheque 0757 27 323 Investment interest 6 Deposit 7 Dell Insurance 410 10 Cheque 0759 977 Cheque 0760 1925 12 Deposit 13 Dividend on BRC shares 18 Deposit Cheque 0762 1 811 20 Cheque 0761 900 Cheque 0763 3 991 21 Deposit 25 Deposit 26 Account keeping fee 59 28 Deposit 29 Cheque 0764 2004 972 18 395 CR 19 367 CR 19 605 CR 238 819 18 613 CR 3817 692 13 722 CR 17 539 CR 18 231 CR 18 172 CR 20 839 CR 18 835 CR 2667 Required: a) Complete the cash receipts and cash payments journals showing the necessary adjustments. Calculate the new totals for each journal. NB: Assume the business records are correct. b) Prepare the Cash at Bank Ledger Account as at 31 May, 2021. c) Prepare a Bank reconciliation statement as at 31 May, 2021. d) In your own words explain how the preparation of the bank reconciliations assists the internal control of cash for Darven Ltd. Identify at least three (3) key control points of the reconciliation process
