Question 2: Westworld Westworld is a shop which sells Wild West souvenirs and memorabilia. The owner of Westworld Ltd has prepared the following trial balance as at 31 July 20X1 from her accounting records: Dr Cr Cash 550 Capital invested 1,000 Land and buildings 50,000 Fixtures and fittings 500 Mortgage 50,000 Sales 23,255 Trade payables 2,020 Inventory on 1 August 20X0 3,640 Purchases 15,245 Wages of sales assistant 6,500 Retained profits as at 1 August 20X0 260 111,190 41,780The owner does not understand why her trial balance does not balance and asks for your help. On investigation, you discover the following information: 1. 2. 5-\" Inventory held on 31 July 20X1 cost 3,380. Cash in the trial balance agrees to the balance in the cash book. However, when the amounts in the cash book were added up a receipt of 100 'om a customer was omitted from the addition of the cash book. A cheque for 40 received 'om a customer has not yet cleared into the bank account. Bank charges of 30 for the month of July are included in the bank statement but have not yet been entered into the cash book. Westworld has not yet paid mortgage interest of 500 owed for the year ended 31 July 20X1. Trade payables in the trial balance agrees with the gure on the payables control account. However, a purchase of 470 was correctly recorded in the payables ledger but was added as 440 in the purchases day book. A payment of 20 to a supplier was correctly included in the cash book but was omitted from the payables ledger itself. Required: a) The bank statement of Westworld reports a balance of 580 on 31 July 20X1. Prepare a statement reconciling the bank account balance to the gure for cash in the trial balance. b) The total of individual balances on the payables ledger as at 31 July 20X1 is 2,070. Prepare a statement reconciling the balance on the payables ledger to the gure for trade payables in the trial balance. c) Prepare a corrected trial balance for Westworld as at 31 July 20X1. d) Explain briefly to the owner of Westworld the meaning and importance of internal control. How can preparing the trial balance, and performing regular bank and control account reconciliations, help to ensure that the figures in the financial statements are correct