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 700 2,500 4,500 2,000 Kuman Michaels Davidson Cheques paid to the following suppliers had not been presented to the bank for payment: Monks 1,080 2,000 1,200 1,800 Thomas Klien Hamzat The following customers who owed Andrea paid Andrea by bank transfer: Simons 520 Marks 500 Arafat 600 Cummins 300 Standing orders given by Andrea to the bank were paid on 29 April, 2021 as follows: Rent 700 Club subscription 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)