Question
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:
- Prepare an updated cashbook for the month (8 marks) (CLO 5)
- Prepare a bank reconciliation statement for the month (8 marks) (CLO 5)
- 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):
- Physical Observation (3 marks)
- Authorization and Approval (3 marks)
- Segregation of Duties (3 marks)
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