0
Bank reconciliation is the act of settling differences contained in a bank statement and the cash account in the books of the bank's customer. Once completed, the adjusted bank balance must prove to the adjusted book balance.
When it does, it indicates that both records are correct. Journal entries are then prepared to update the records and to arrive at an ending balance in the cash account that agrees with the ending balance in the bank statement.
Wiki User
∙ 10y ago
Wiki User
∙ 11y agoA Bank reconciliation is a process that explains the difference between the bank balance shown in an organization's bank statement, as supplied by the bank, and the corresponding amount shown in the organization's own accounting records at a particular point in time.
Wiki User
∙ 11y agoverifying all the transactions done with the bank
Add your answer:
Earn +20 pts
What is bank reconciliation statement?
Bank Reconciliation Statement
Why a bank reconciliation necessary?
why a bank reconciliation necessary
What are the types of bank reconciliation?
types of bank reconciliation
What are the types of reconciliation?
types of bank reconciliation
How should unrecorded bank services charges be treated on the bank reconciliation?
On a bank reconciliation. What should the amount of an unrecorded bank service charge be?
When should a bank reconciliation be prepared?
A bank reconciliation should be prepared to reconcile the accounts in the company's books and those at the bank. This is usually done using bank statements.
What Need and importance of bank reconciliation statement?
* Bank reconciliation statement ensures the accuracy of the balances shown by the pass book and cash book. * Bank reconciliation statement provides a check on the accuracy of entries made in both the books. * Bank reconciliation statement helps to detect and rectify any error committed in both the books. * Bank reconciliation statement helps to update the cash book by discovering some entries not yet recorded. * Bank reconciliation statement indicates any undue delay in the collection and clearance of some cheques.
Is the Bank Reconciliation statement a part of financial statement?
Bank reconciliation statement is not part of financial statement it is the helping statement to tally bank account with balance in banks statement.
Why should a bank reconciliation be prepared periodically?
A bank reconciliation should be prepared periodically. This helps you keep up with the exact amount in your account and with any fees the bank is charging.
What is the definition of bank reconciliation?
A bank reconciliation is a routine / process / method, etc, by which you reconcile the bank's balance of your account to your balance of your account as of a specific date. (Helps you make sure what think you have, is what the bank thinks you have.)
Bank reconciliation statement is prepared by?
bankers
Who prepares the bank reconciliation statement?
accountant
