Question

The bank columns in the cash book for June 2019 and the bank statement for that month for D. Hogan are as follows:
Dr Cash Book Cr
2019 $ 2019 $
1-Jun Balance b/d 1410 5-Jun L. Holmes 180
7-Jun J. May 62 12-Jun J. Rebus 519
16-Jun T. Wilson 75 16-Jun T. Silver 41
28-Jun F. Slack 224 29-Jun Blister Disco 22
30-Jun G. Baker 582 Jun-30 Balance c/d 1591
2353 2353

Bank Statement
Jun-19 Dr Cr Balance
$ $ $
1 Balance b/d 1410
7 Cheque 62 1472
8 F. Lane 180 1292
16 Cheque 75 1367
17 J. Rebus 519 848
18 T. Silver 41 807
28 Cheque 224 1031
29 SLM standing order 52 979
30 Flynn: trader's credit 64 1043
30 Bank charges 43 1000

As the accountant, you have been asked to do the following:
a. Prepare an updated cashbook for the month.                                         (CLO 5)
b. Prepare a bank reconciliation statement for the month.                         (CLO 5)
c. Describe three (3) objectives of internal control.                                   (CLO 6)
[Total 20 marks]

Answer 1

Answer
a) Cash Book
	$	$	$
Particulars	Dr	Cr	Balance
1st June	1410	0	1410
5th		180	1230
7th	62		1292
12th		519	773
16th	75		848
16th		41	807
28th	224		1031
29th		22	1009
30th June	582		1591
b) Bank Reconciliation Statement
			$
Debit Balance as per Cash Book			1591
Add: Cheque issued but not clear			22
Add: Flynn traders credit			64
Less: Cheques deposited but not cleared			-582
Less: SLM Standing oredr			-52
Less: Bank charges			-43
Debit Balance as per Bank			1000
c) Three object of Internal control are:
1) Detecting & Preventing frauds & keep accounts error free
2) Effective utilisation of resourcess and process
3) Statutory complianes complied