Question 1 Hector Ltd Hector Ltd prepares monthly bank reconciliations. Balances as at 28 February 20X3...

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Question 1 Hector Ltd Hector Ltd prepares monthly bank reconciliations. Balances as at 28 February 20X3 were as follows: Bank statement: 154,100 Cash book: 167,110 Notes: Cheque payments numbers 679 (530) and 681 (310) were recorded in the cash book but have not yet been cashed. Cash deposits of 5,440 and cheque deposits of 6,560 were paid into the bank on 27 and 28 February respectively, and did not clear at the bank until 1 March 20X3. The bank statement showed an electricity direct debit payment of 3,000 and bank interest received of 90 which were not recorded in the cash book. An international bank transfer payment number X5674367 for 1,060 was made on 28 February 20X3 and recorded in the cash book but did not appear on the bank statement until 1 March 20X3. Requirements (a) Prepare a bank reconciliation as at 28 February 20X3 assuming you work in the accounting department of Hector Ltd. BANK RECONCILIATION Balance per bank statement at 28.2.20X3 Add: Uncleared lodgements Less: Uncleared payments Balance per (corrected) cash book Balance per (unadjusted) cash book Corrections necessary: Balance per (corrected) cash book E Difference (must be zero!) (b) List the audit procedures that you would carry out to verify the bank reconciliation if you were the auditor of Hector Ltd. Question 1 Hector Ltd Hector Ltd prepares monthly bank reconciliations. Balances as at 28 February 20X3 were as follows: Bank statement: 154,100 Cash book: 167,110 Notes: Cheque payments numbers 679 (530) and 681 (310) were recorded in the cash book but have not yet been cashed. Cash deposits of 5,440 and cheque deposits of 6,560 were paid into the bank on 27 and 28 February respectively, and did not clear at the bank until 1 March 20X3. The bank statement showed an electricity direct debit payment of 3,000 and bank interest received of 90 which were not recorded in the cash book. An international bank transfer payment number X5674367 for 1,060 was made on 28 February 20X3 and recorded in the cash book but did not appear on the bank statement until 1 March 20X3. Requirements (a) Prepare a bank reconciliation as at 28 February 20X3 assuming you work in the accounting department of Hector Ltd. BANK RECONCILIATION Balance per bank statement at 28.2.20X3 Add: Uncleared lodgements Less: Uncleared payments Balance per (corrected) cash book Balance per (unadjusted) cash book Corrections necessary: Balance per (corrected) cash book E Difference (must be zero!) (b) List the audit procedures that you would carry out to verify the bank reconciliation if you were the auditor of Hector Ltd.