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: a) Prepare an updated cashbook for the month b) Prepare a bank reconciliation statement for the month c) 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. 1: Physical Observation 2: Authorization and Approval 3: Segregation of Duties
The bank columns in the
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:
a) Prepare an updated cashbook for the month
b) Prepare a
c) 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.
1: Physical Observation
2: Authorization and Approval
3: Segregation of Duties
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