The following information is produced by comparing the cash deposits and withdrawals recorded by the M&N Windows Ltd for the month with their most recent bank statement received at 30 June 2019:

1. M&N Windows Ltd' cash at bank ledger at 30 June 2019 is: $75,864
2. Credit balance as per bank statement as at 30 June 2019 is: $101,160
3. Bank statement shows an electronic transfer from a customer of $3,864
4. Deposits in transit, $12,540
5. Interest earned on bank account, $75
6. Unpresented cheques, $37,407
7. Service charge included in bank statement, $150
8. Cheque for insurance expense, $5,370 incorrectly recorded in books as $5,910
9. A dishonoured cheque written by a client Jim Smith, $3,900

The entity doesn't use special journals for record keeping. The entity prepares bank reconciliation statement at the end of each month.

Required:

a) Prepare a bank reconciliation statement for M&N Windows Ltd at 30 June 2019.

b) Discuss why a bank reconciliation is still necessary even most of the transactions take place using

electronic transfer of funds nowadays.