The following is the bank reconciliation statement of Newton stores at 31 August 2003: R R Overdraft per bank statement 2000 Add: Cheques not yet presented No. 0004 800 0006 300 1 000 0011 0017 950 3 050 5 050 Less: Deposit not yet credited 6 200 Balance per bank account 1 150 The following is a summary of cash receipts and payments journals for September 2003, before posting to the bank account in the general ledger: Receipts Payments Date Amount Date Cheque R 9 Deposits 2 900 2 0021 Freight 13 Deposits 1 500 10 0022 Stationery 16 Deposits 2 500 17 0023 Purchases 23 Deposits 3 000 21 0024 Freight 25 Deposits 5 000 23 0025 Purchases 30 Deposits 1 950 27 0026 T. Timberman 30 0027 Cash: wages 16 850 Amount R 500 270 3 800 200 5 750 3 530 5 300 19 350 The bank statement for September 2003 is as follows: Date Debits Credits Balance R R R Sept. 1 Balance 2 000 Dr Deposit 6 2004 200 Cr 3 Cheque 006 300 3 900 7 Cheque R/D (D. Doubtful) 720 3 180 10 Deposit 2 900 6 080 13 Deposit 1 500 7 580 17 Deposit 2 500 10 080 19 Cheque 0023 3 800 6 280 21 Cheque 0017 950 5 330 22 Cheque 0024 200 5 130 24 Deposit 3 000 8 130 25 Deposit 5 000 13 130 26 Cheque 0025 5 750 7 380 28 Transfer 250 7 630 Cheque 0021 500 7 130 30 Magtape debit M&F 99012 250 6 880 Cheque 0027 3 500 3 380 Service fees 100 3 280 Interest 20 3 260 Commission 5 3 255 Here is some additional information: 1. Cheque 0027 was incorrectly entered in the cash payments journal. 2. Cheque 0004 issued for goods brought for cash had become stale and must be written back. 3. The transfer into the bank on 28 September is for interest on a fixed deposit 4. The Magtape debit on 30 September is for insurance. Required a. Complete the cash receipts and payments journals for September 2003. b. Prepare the bank account as it would appear in the general ledger at 30 September 2003. c. Explain what a bank reconciliation statement is, and why it is necessary to prepare such a statement periodically. d. Prepare a bank reconciliation statement at 30 September 2003 in vertical format