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 September with their bank statement received for the month ending 30 September 2021:

Safe Security Doors Ltd.s cash at bank ledger account has a debit balance of $141,999 at 30 September 2021.

The bank statement for the month of September shows a credit balance of $145,925 as at 30 September 2021.

Bank statement shows a direct electronic transfer from a customer of $15,405 that has not been recorded by the entity.

$10,205 cash received from a customer Adam on 29 September (invoice no. 411) and $14,359 cash received from another customer Brian on 30 September (invoice no. 413) are recorded in the entitys accounting record but are not shown in the bank statement.

Interest earned on bank account is $110.

Cheque no. 312 and 313 are not included in the bank statement. # 312 $ 10,458 # 313 $ 9,035

Bank deducted transaction fees of $19 for an overseas transfer by the entity.

Safe Security Doors Ltd. incorrectly recorded a payment for insurance expenses as $2,200 in its record. The correct amount for the cheque issued is $3,300 instead.

A dishonoured cheque written by a customer Cindy Davis, $5,399.

The business doesnt use special journals for record keeping. All transactions are recorded in the general journal and posted to ledgers immediately.

Required:

Prepare a bank reconciliation statement for Safe Security Doors Ltd as at 30 September 2021. You should show both the adjusted cash balance per book and per bank and also indicate clearly whether the balance is a debit or credit. (7 marks)

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