What do you mean by Bank Reconciliation Statement.

Question

Accepted Answer

Bank Reconciliation Statement is a document that compares the bank statement with the company's records to identify any discrepancies.

Bank Reconciliation Statement is prepared to ensure that the company's records match with the bank's records.
It helps in identifying any errors or omissions in the company's accounting records.
It includes comparing the bank statement balance with the company's cash book balance.
Reconciling items may include outstanding checks, deposits in transit, bank charges, and interest.
The purpose is to ensure the accuracy of the company's financial records and detect any fraudulent activities.
Example: If the company's cash book shows a balance of $10,000, but the bank statement shows a balance of $9,500, the Bank Reconciliation Statement will help identify the reasons for the difference.

Accepted Answer

A bank reconciliation statement summarizes banking and business activity, reconciling an entity's bank account with its financial records. Bank reconciliation statements confirm that payments have been processed and cash collections have been deposited into a bank account

What do you mean by Bank Reconciliation Statement.

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