Bank statement received by Mustapha Trading showed differences in balances between the bank statement and the cash books records. The followings are cash book (bank column) and bank statement from CMM Bank for the month of March 2020.

Cash Book (Bank Column)

2020 Mar	Particulars	RM	2020 Mar	Particulars	Cheque No	RM
1	Balance b/d	6,064	1	Gray Sage Bhd.	146700	900
7	Munir	600	3	Celcom	146701	440
10	Zam Bhd.	2,440	5	Purchases	146702	3,060
12	Nabil Trading	450	14	Utilities	146703	1,560
13	Wanies	3,200	15	Rent	146704	900
15	Lowmi	2,600	20	Sales	593200	3,220
17	Sales	700	29	Salary	146705	5,000
			31	Balance c/d		974
		16,054				16,054

Bank Statement as at 31^stMarch 2020

Date Mar 2020	Particulars	Cheque No	Debit RM	Credit RM	Balance RM
1	Balance b/d				6,064
8	Cheque	146700	900		5,164
9	Deposit			600	5,764
10	Cheque	146701	440		5,324
12	Deposit			2,440	7,764
13	Deposit			450	8,214
15	Cheque	146703	1,740		6,474
16	Credit transfer			300	6,774
18	Cheque	146704	900		8,474
22	Deposit			3,220	9,094
23	Dividend			200	9,294
24	Dishonoured cheque		700		8,594
25	Standing order		412		8,182
30	Interest		20		8,162
30	Bank charges		48		8,114
31	Direct debit		400		7,714

Additional information:

1. Mustapha Trading had wrongly recorded RM1,740 paid for utilities (Cheque No: 146703) as RM1,560 in the cash book.
2. On 20 March 2020, RM3,220 worth of sales was wrongly recorded in the credit side of cash book.

Required:

1. Adjust and update the bank account.

(8 marks)

2. Prepare a bank reconciliation statement as at 31st March 2020.

(8 marks)