Briefly explain the purpose of bank reconciliation (in your own word) Give FOUR advantages of electronic statements

1.1.1 Cashbook for September 2020 | Date | Details | Folio | Amount (R) | Date | Details | Folio | Amount (R) | | :--- | :-------------------------------- | :---- | :--------- | :--- | :-------------------------------- | :---- | :--------- | | Receipts (Debit) | | | | Payments (Credit) | | | | | Sept 1 | Capital contribution | R005 | 400 000 | Sept 1 | Lime and fertilizer | C120 | 3 000 | | Sept 2 | Sale of old equipment | R006 | 8 000 | Sept 6 | Water and electricity | C121 | 5 000 | | Sept 4 | Rental income | R007 | 10 000 | Sept 10 | Feed and vaccines | C122 | 8 000 | | Sept 12 | Sales (direct deposit) | Rec | 10 000 | Sept 18 | Wages | C123 | 15 000 | | Sept 15 | Insurance refund | R009 | 4 000 | Sept 22 | Building material (Buidit) | C124 | 25 000 | | Sept 21 | NYDA Grant | Rec | 50 000 | Sept 29 | Wages | C125 | 15 000 | | | | | | Sept 30 | Balance c/d | | 411 000 | | Total | | | 482 000 | Total | | | 482 000 | | Oct 1 | Balance b/d | | 411 000 | | | | | Calculation of Balance: Total Receipts = R400\,000 + R8\,000 + R10\,000 + R10\,000 + R4\,000 + R50\,000 = R482\,000 Total Payments = R3\,000 + R5\,000 + R8\,000 + R15\,000 + R25\,000 + R15\,000 = R71\,000 Closing Balance = Total Receipts - Total Payments Closing Balance = R482\,000 - R71\,000 = R411\,000 1.2 The purpose of bank reconciliation is to compare the cash balance in a business's cashbook with the balance shown on the bank statement. This process helps identify and explain any differences between the two records, ensuring that both the business's books and the bank's records are accurate and up-to-date. It helps to detect errors, unrecorded transactions, and outstanding items like unpresented cheques or deposits in transit. 1.3 Four advantages of electronic statements are: Convenience: They can be accessed anytime, anywhere, through online banking platforms. Environmental friendly: They reduce paper consumption, contributing to a greener environment. Security: They are often password-protected and less susceptible to physical theft or loss compared to paper statements. Easy storage and retrieval: Electronic statements can be easily saved, organized, and searched on a computer or cloud storage, reducing clutter. Drop the next question.