MrA Mathews, a client of your firm, has provided you with the following bank statement and bank account details in respect of the month ended 31 December 2016. STATEMENT OF ACCOUNT- YOUR BANK LTD Statement date 31 December 2016. Account No 123456 Debit Credit Balance 01 Dec-16 Balance forward 01-Dec-16 Cheque 1233 01-Dec-16 Lodgement 03-Dec-16 Choque 1234 05-Dec-16 Direct Debit ESB 06-Des-16 Credit Transfer VAT Refund 07-Dec-16 Cheque 1235 10Dee-16 Lodgement 15-Dec-16 Cheque 1236 18 Dec-16 Credit Transfer Receivables Payment 20 Dec-16 BakCharges for qtr ended Sept 09 21-Dec-16 Cheque 1237 21-Deo-16 Cheque 1238 22-Doo-16 Lodgement 23-Dec-16 Standing Order Leasing 61,526 Cr 56,526 Cr 62,526 Cr 5,000 6,000 6,600 55,926 C 1,350 2,820 25,488 54,576 Cr 4,800 59.376 Cr 56,556 Cr 5.350 62,106 Cr 16,618 Cr 11,550 48,168 Cr 7,508 Cr 41,623 Cr 3,885 9.645 1500 3478C 4,500 30,978 Cr The books and records of A Mathews show the followings transactions through the bank account for the month of December 2016: K Date Payments 2/12/16 Balance 62,526 12/16 Direct debit ESB 212/16 Cheque 1234 5,400 5126 Cheque 1235 12/12/16 Cheque 1236 14 12/16 Bank charges 19 12/16 Cheque 1237 2012/16 Cheque 1238 1,500 24/12/16 Choque 1239 24/12/16 Cheque 1240 12.900 28/12/16 Cheque 1242 9/1216 Lodgement 3,885 9,645 23/12/6 Lodgement 28/12/16 Lodgement 31/12/16 Balance 82,326 19.773 2017 Balance You are required to: Outline in brief why the regular preparation of bank reconciliations is important. 3 Marks b) Write up the adjustments that are necessary to correct the bank account in A Mathew's books