Question 4: (10 marks) You work as a trainee accounting clerk for Mr. Eric. He has provided you with the following bank statement and bank account details in respect of the month ended 31 January 2021. STATEMENT OF ACCOUNT - MCB LTD Statement date - 31 January 2021. Account No 123456789 Date Particulars Debit Credit Balance Rs 01-Jan-21 Balance forward 27,970 Cr 03-Jan-21 Cheque 14596 1,250 26,720 Cr 03-Jan-21 Lodgement 7,070 33,790 Cr 06-Jan-21 Cheque 14597 60 33,730 Cr 06-Jan-21 Direct debit 1,010 32,720 Cr 12-Jan-21 Credit transfer 2,330 35,050 Cr 13-Jan-21 Cheque 14600 710 34,340 Cr 14-Jan-21 Cheque 14601 6,014 28,326 Cr 16-Jan-21 Lodgement 4,500 32,826 Cr 19-Jan-21 Cheque 14599 9,002 23,824 Cr 23-Jan-21 Bank charges for December 2020 211 23,613 Cr 25-Jan-21 Interest received for the Quarter 31 23,644 Cr 27-Jan-21 Dishonoured cheque 800 22,844 Cr 27-Jan-21 Cheque 14598 13,045 9,799 Cr 30-Jan-21 Cheque 14603 2,524 7,275 Cr 31-Jan-21 Lodgement 7,250 14,525 Cr 31-Jan-21 Standing order: rent paid 2021 13,500 1,025 Cr Mr. Erics books and records show the followings transactions through the bank account for the month of January 2021: Date Receipts Rs Date Payments Rs 1/01/21 Balance 33,790 4/01/21 Cheque 14597 60 6/01/21 Cheque 14598 13,000 10/01/21 Cheque 14599 9,002 11/01/21 Cheque 14600 710 12/01/21 Lodgement 2,330 12/01/21 Cheque 14601 6,014 16/01/21 Lodgement 4,500 18/01/21 Cheque 14602 5,949 20/01/21 Cheque 14603 2,524 28/01/21 Lodgement 7,350 30/01/21 Cheque 14604 42 31/01/21 Lodgement 4,110 31/01/21 Balance 14,779 52,080 52,080 1/2/2021 Balance 14,779 Required: (a) Prepare the adjusted cash book for the month of January 2021. 4 Marks (b) Prepare a statement on 31 January 2021, reconciling the adjusted cash book with the bank statement balance. 4 Marks (c) Explain, with the aid of relevant examples, in report format, two reasons for preparing bank reconciliations on a regular basis. 2 Marks Q