What is bank reconciliation?

Question

Accepted Answer

Bank reconciliation is the process of comparing a company's bank statement with its own accounting records.

It helps to identify any discrepancies between the two records.
It ensures that all transactions are accurately recorded in the company's books.
It involves matching transactions on the bank statement with transactions in the company's accounting system.
Any differences are investigated and resolved.
Examples of items that may cause discrepancies include outstanding checks, deposits in transit, and bank fees.
Bank reconciliation is typically done on a monthly basis.
It is an important internal control procedure to prevent fraud and errors.
It helps to ensure the accuracy of financial statements.
Bank reconciliation is a common task for accountants and bookkeepers.

Accepted Answer

It is a statement reconciling the balance as shown by bank passbook and the balance as shown by the book

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