What does reconciloation mean?

Answer 1

Reconciliation means matching two records to make sure they show the same correct balance. It is done to find mistakes, missing entries, or timing differences. A common example in India is bank reconciliation, where a company matches its cash book with the bank statement. For example, if your passbook shows ₹10,000 but your cash book shows ₹9,500, reconciliation helps find the reason, like bank charges or a cheque not yet cleared. Reconciliation ensures accuracy and trust in accounts.

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Answer 2

Reconciliation refers to the process of restoring relationships or resolving differences between individuals or groups. It often involves acknowledging past grievances, fostering understanding, and finding common ground to move forward positively. In financial contexts, reconciliation means ensuring that two sets of records, such as bank statements and accounting entries, match and are accurate. Overall, reconciliation aims to achieve harmony and agreement after a period of conflict or discrepancy.