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The bank columns in the cash book for June 2019 and the bank statement for that month for Phillips Hardware Company Ltd are as follows:

The bank columns in the cash book for June 2019 and the bank statement for that month for Phillips Hardware Company Ltd are as follows:

Dr

Cash Book

Cr

2019

$

2019

$

1-Jun

Balance b/d

4,230

5-Jun

R.Red

540

7-Jun

P. Ryan

186

12-Jun

J. Rebus

1,557

16-Jun

G. Grey

225

16-Jun

Y.Yale

123

28-Jun

J. Jim

672

29-Jun

Blister Disco

66

30-Jun

T. Fling

1,746

30-Jun

Balance c/d

4,773

7,059

7,059

Bank Statement

June 2019

Dr

Cr

Balance

$

$

$

1

Balance b/d

4,230

7

Cheque

186

4,416

5

R.Red

540

3,876

16

Cheque

225

4,101

17

J. Rebus

1,557

2,544

18

Y.Yale

123

2,421

28

Cheque

672

3,093

29

SLM standing order

156

2,937

30

G.Rice: trader's credit

192

3,129

30

Bank charges

129

3,000

As the accountant, you have been asked to do the following:

  1. Prepare an updated cashbook for the month (8 marks) (CLO 5)
  2. Prepare a bank reconciliation statement for the month (8 marks) (CLO 5)
  3. Advise the directors of Phillips Hardware how they can use the internal control measures listed below to mitigate against error and fraud in the business. (CLO 6):
  1. Physical Observation (3 marks)
  2. Authorization and Approval (3 marks)
  3. Segregation of Duties (3 marks)

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