waht is Bank reconcilation statement?

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Bank reconciliation statement is a document that matches the balance in a company's accounting records to the balance shown on the bank statement.

Bank reconciliation statement is prepared to ensure the accuracy of the financial records.
It compares the company's internal records of transactions with the bank's records.
Discrepancies between the two balances are identified and resolved.
Common reasons for discrepancies include outstanding checks, deposits in transit, bank fees, and errors.
Once reconciled, the adjusted balance should match the ending balance on the bank statement.