On 8April 2019 Terang Enterprise received its monthly banks statement for the month ended 31 March 2019. The banks statement contained the following details:

Required:

1. Explain the purpose of preparing a bank reconciliation statement.
2. Update the cash book (bank column).
3. Prepare a bank reconciliation statement as at 31 March 2015.

Statement of Account Berkat Bank Shah Alam Date Particulars Debit (RM) Credit (RM) Balance (RM) March 1 Balance bit 200.2 Cr March 3 Cash deposit 6,000.00 6,200.2 Cr March 4 Electronic fund transfer 1,500.00 7,700.2 Cr March 6 Cheque book 5.00 7,695.2 Cr March 8 Clearing cheque-89090 450.00 7,245 2 Cr March 10 Clearing cheque-89091 600.00 6,645.2 Cr March 12 Clearing cheque -89092 343.00 6,302.2 Cr March 15 Bank GIRO Credit 542.00 6,844.2 Cr March 20 Direct debit 465.00 6379.2 Cr March 25 Interest 245.8 6,625 Cr March 28 Bank charges 10.00 6,615 Cr The following is a summary of the cash book (bank column) of Terang Enterprise for Mare 2019: Bank Account Date March 1 March 3 RM 5.00 Particulars Balance bld Cash deposit Electronic fund transfer 450.00 March 4 RM Date Particulars 200.20 March 7 Cheque book 6,000.00 March 7 Lim Auto-89090 1,500.00 March 8 Calmex Bhd- 89091 100.00 March 0 Ali - 89092 March 28 Ben -89094 March 31 Balance cld March 30 Ros Brothers 600.00 343.00 300.00 6,102.20 7,800.20 7,800.20