The following information is produced by comparing the cash deposits and withdrawals recorded bythe M&N Windows Ltd for the month with their most recent bank statementreceived 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 2019is:$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 inbank 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 June2019. (6 marks)

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