The following information is produced by comparing the cash deposits and withdrawals recorded by the M&N Windows Ltd for the month with their most recent bank statement received at 30 June 2019:

a. M&N Windows Ltd cash at bank ledger at 30 June 2019 is: $75,864

b. Credit balance as per bank statement as at 30 June 2019 is: $101,160

c. Bank statement shows an electronic transfer from a customer of $3,864

d. Deposits in transit, $12,540

e. Interest earned on bank account, $75

f. Unpresented cheques, $37,407

g. Service charge included in bank statement, $150

h. Cheque for insurance expense, $5,370 incorrectly recorded in books as $5,910

i. A dishonoured cheque written by a client Jim Smith, $3,900 The entity doesnt use special journals for record keeping.

The entity prepares bank reconciliation statement at the end of each month.

Required: a) Prepare a bank reconciliation statement for M&N Windows Ltd at 30 June 2019. (6 marks)

b) Discuss why a bank reconciliation is still necessary even most of the transactions take place using electronic transfer of funds nowadays. (2 marks)