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1. 2 3. 4. Question 3 As an accounts executive of Best Trading one of your monthly routine tasks is to prepare a bank reconciliation statement. For the month of March 2021. you have collected the following information: The 'Cash at Bank' ledger account balance is $31,100 (Dr) as at March 31, 2021. The bank statement as at March 31, 2021, showed a credit balance of $12,550. A cash sale of $200 was banked in intact on March 19. However, the transaction was recorded twice in the cash book, once based on the sales invoice issued and once based on the bank-in slip that is filed separately with the invoices. The Bank credited Best Trading correctly in the bank statement A cheque paid by Soso Trading (Cheque no: 5555) of $500 was wrongly charged by the Bank to Best Trading Best Trading banked in a deposit on March 20 amounted to $37,260 but still not cleared by the banking system. 5. The following cheques drawn by Best Trading have not been presented for payments: Cheque No: Date of cheque $ 2058 Nov 6, 2020 10,410 2175 March 15, 2021 5,000 You were on lockdown from March 20 to 31 and have not recorded transactions during this period in the cash book. Best Trading has given a standing instruction to the Bank to pay an insurance premium of $11,300 on March 25, Bank charges amounted to $60 charged by the Bank on March 31, not recorded by Best Trading A customer transferred $15,360 directly into Best Trading's bank account on March 20. Required: (a) Prepare the 'Cash at Bank ledger account for March 2021 by including all updates, corrections and opening balance of the following month. (7 marks) (b) Prepare the bank reconciliation statement as at March 31, 2021. (9 marks) (C) Identify two internal control issues during the preparation of the March bank reconciliation of Best Trading and explain why you think there is a problem. Recommend an appropriate remedial action for each case you have identified. (4 marks) 6. (Total = 7+9+420 marks)

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