Safe Security Doors Ltd. undertakes bank reconciliation at the end of each month before preparing its monthly financial statements. The following information is produced by comparing the cash deposits and withdrawals recorded by the business in October with their bank statement received for the month ending 31 October 2021:

a.The bank statement for the month of October shows a credit balance of $157,150 as at 31 October 2021.

b.Safe Security Doors Ltd.'s cash at bank ledger account has a debit balance of $152,922 at 31 October 2021.

c.Bank statement shows a direct electronic transfer from a customer of $16,590 that has not been recorded by the entity.

d.$10,990 cash received from a customer Adam on 30 October (invoice no. 511) and $15,463 cash received from another customer Brian on 31 October (invoice no. 513) are recorded in the entity's accounting record but are not shown in the bank statement.

e.Cheque no. 412 and 413 are not included in the bank statement. # 412 $ 11,263 # 413 $ 9,730

f.Safe Security Doors Ltd. incorrectly recorded a payment for supplies expenses as $3,100 in its record. The correct amount for the cheque issued is $4,400 instead.

g.A dishonoured cheque written by a customer Cindy Davis, $5,700.

h.Interest earned on bank account is $119

i.Bank deducted transaction fees of $21 for an overseas transfer by the entity.

The business doesn't use special journals for record keeping. All transactions are recorded in the general journal and posted to ledgers immediately.

Required: A.Prepare bank reconciliation statement for Safe Security Doors Ltd as at 31 October 2021. Should show both the adjusted cash balance per book and per bank and also indicate clearly whether the balance is a debit or credit.

B.Discuss three (3) internal control principles for cash payments. Provide corresponding examples of procedures that are applicable to each principle.