Why you make bank reconcilation statements?

Answer 1

Ending bank account balance per bank statement - add deposits made before and upto the date of the ending balance on the bank statement that are not on the bank statement - subtract checks and other expenses (debit cards, etc) made before and upto the date of the ending balance on the bank statement that are not on the bank statement - the end result is the reconciled bank account balance. 'Bank reconcilation statement' means veryfying / realising every transactions done with bank. It may be related with payment made or credit received or particular interest charged or received.

Answer 2

'Bank reconcilation statement' means veryfying / realising every transactions done with bank. It may be related with payment made or credit received or particular interest charged or received.

Answer 3

The basic purpose of bank reconsiliation statement is to reconsile the bank account in books of company as well as company account with bank.

For example:

Company issued cheque amount $1000 and reduce $1000 from bank balance but if that cheque not yet presented in bank at the end of period then company account in bank statements would show $1000 morethan bank account of company financial statements that's why it is necessary to reconsile from time to time for such transections.

Answer 4

You make bank reconciliation statements to make sure your records are the same as the bank's. This is done to avoid any mistakes that may have occurred.