Using the information below, make the necessary entries in the ledger accounts of Crathes Crafts.

Ledger balances as of 1 March 2013 

Credit: R Cook £420
Bank Overpublish £850
Office Equipment £3,500
5 March purchased items from R Cook for £280 including VAT on credit.
12 March Paid by check for office equipment repairs totaling £150 + VAT.
21 March purchased new printers from DB Office Supplies for £960 including VAT on credit.
24 March R Cook received a check for £300 on account.
28 March DB Office Supplies received a defective printer that cost £320 plus VAT.
(a) Crathes Crafts receives a bank statement each month. Give two explanations for why the closing balance on this statement and the closing balance in the bank account in the ledger rarely match.
(b) The proprietor of Crathes Crafts creates a Cash Budget in addition to a Profit and Loss Account. Describe the significance of both to the smooth operation of the company.