Question 2 Elisa Sdn. Bhd. had recently reconciled its bank statement and book balances of cash on 31 August 2020. It has been reported that there are two cheques outstanding: No. 5888 for RM1,038.05 and No. 5893 for RM484.25. The following information is available for the month of September 2020: CIMB Bank Bhd Bank Statement September 2020 Date Details/Cheques No Credit Balance Debit (RM) (RM) (RM) 1/9/2020 Balance b/d NSF 588.25 5902 731.9 1,103.78 5901 1.824.25 2,226.90 4/9/2020 5/9/2020 7/9/2020 12/9/2020 17/9/2020 20/9/2020 21/9/2020 22/9/2020 16,800.45 16.212.20 19,480,30 16,584.05 14,759,80 16,986,70 15.948.65 15.011.65 19,104.65 18,705.SS 16,625.55 5888 1.038.05 937 3905 4,093.00 5903 399.1 5904 2080 2,351.70 18,977.25 25/9/2020 28/9/2020 3907 213.85 29/9/2020 5909 1.807.65 18,763.40 16,955.75 16,978.25 30/9/2020 Interest Credit Memorandum 22.5 1,385,00 18,363.25 Cash Book Page 4 of 2 Date RM 3/9/20 5901 5902 1.824.25 731.90 4/9/20 Date 1/9/20 Bal, b/d 5/9/20 12/9/20 21/9/20 25/9/20 30/9/20 RM 15.278.15 1.103.75 2.226.90 4,093.00 2,351.70 1.582.75 5903 5/9/20 6/9/20 10/9/20 3904 399.10 2,050.00 937.00 5905 5906 859.30 12/9/20 20/9/20 5907 213.85 22/9/20 5908 25/9/20 5909 30/9/20 Bal.eld 276.00 1,80765 17.537.20 26,636.25 26,636.25 Additional information: (1) (2) Cheque number 5904 is correctly drawn for RM2.080 to pay for computer equipment The NSF cheque shown in the statement was originally received from a customer, S. Nilson. The return has not yet been recorded by the company. The credit memorandum is from the collection of RM1,400 note for Elisa Sdn. Bhd. by the bank. The bank deducted RMIS collection fee. This has not been recorded by the company too (3) Required: (c) The bank statement reveals that some of the pre-numbered cheques in the sequence are missing. Describe TWO (2) situations that could explain this. (6 marks) (d) Briefly explain why it is necessary to prepare bank reconciliation statements at accounting year ends