QUESTION 3: On 30 April, 2021, Andrea's cash book showed a debit balance of 7,200. On the same date her bank statement balance showed a credit balance of 4,022. On examination of the records, the following were revealed: On 1 April, 2021 the cash book balance was overstated by 400 A cheque issued for 275 was recorded as 257 Cheques received from the following customers and paid into the bank account did not appear on the bank statement: Birk Kuman Michaels Davidson 700 2,500 4,500 2,000 Cheques paid to the following suppliers had not been presented to the bank for payment: Monks Thomas Klien Hamzat 1,080 2,000 1,200 1,800 The following customers who owed Andrea paid Andrea by bank transfer: 520 Simons Marks Arafat Cummins 500 600 300 Standing orders given by Andrea to the bank were paid on 29 April, 2021 as follows: Rent Club subscription 700 300 Bank charges of 60 appeared on the bank statement only REQUIRED: a) Prepare an Adjusted Cash Book. (10 marks) b) Prepare a Bank Reconciliation Statement as at 30 April, 2021. (8 marks) C) Explain briefly the principal reasons for preparing a bank reconciliation and discuss the possible reasons why the cash book and bank statement balances may differ. (7 marks)