What is Bank reconciliation and it's process

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Bank reconciliation is the process of matching and comparing the balance in a company's accounting records with the balance in its bank statement.

Bank reconciliation ensures that all transactions are accurately recorded in the company's accounting system.
The process involves comparing the company's records of deposits, withdrawals, and other transactions with the bank statement.
Any discrepancies are identified and resolved, such as outstanding checks or deposits in transit.
Bank reconciliation helps to prevent errors and fraud, and ensures the accuracy of financial statements.
Example: A company's accounting records show a balance of $10,000, but the bank statement shows a balance of $9,500. After performing bank reconciliation, it is discovered that there is an outstanding check for $500 that has not yet cleared the bank.

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