The bank statement contained two memoranda: 

1. Credit memoranda: A collection of a notes receivables with a principle amount of RM4,000, an interest of RM160 and a collection fee of RM15. Suka-Suka Company has not accrued any interest on the note. 

2. Debit memoranda: RM372.80 for an NSF cheque written by Kelakar Enterprise, a customer. At December 31, the cheque had not been redeposited in the bank. At May 31, the cash balance per books was RM12,485.20 and the cash balance per bank statement was RM20,154.30. It was found that the bank overstated the amount of a cheque number 1026, and another error was made by Suka-Suka Company. 

TASKS 7.1 - Prepare Adjust and update the bank account. 

TASKS 7.2 - Prepare a bank reconciliation statement as at 31 October 2021 

TASKS 7.3 - Do you think that it is important for a business to prepare a bank reconciliation? 

Give THREE (3) reason