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A Bank Reconciliation is an archive that coordinates the money balance on an organization's accounting report to that of bank proclamations. Accommodating the two records helps deciding whether bookkeeping changes are required. It is completed at customary stretches to guarantee the organization's money records are exact. On the off chance that there is any extortion or burglary it very well may be resolved through compromise.

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Banks are known to make mistakes, meaning you should carefully check your bank statements every month to ensure they match up with your books. The practice of reconciling your bank statement is called bank reconciliation, and it’s an essential practice for any small business owner who handles financial tasks.

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Here we have considered the Difference between the Bank balance as per Cash Book & the Pass book by preparation of the Bank Statement. The reasons of differences & importance of finding the variation is discussed

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Businesses maintain cash books to record both cash as well as bank transactions.A Cashbook has a cash column that shows cash available with the business and a bank column that shows cash at the bank. Bank also keeps an account for every customer in their books. All the deposits are recorded on the credit side of the customer’s account and withdrawals are on the debit side of their account. An account statement is sent regularly to the customers by the bank. Sometimes the bank balances as per the cash book and bank statement doesn’t match. In case the balance available in the passbook doesn’t match the bank column of the cash book, the business should identify the reasons for the same. https://lexlens.com/

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Title: The purpose of the bank reconciliation statement Author: RHSBSS Last modified by: renuka.mehra Created Date: 8/24/2001 4:07:19 AM Document presentation format

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