What is reconcilation statment?

Answer 1

A reconciliation statement is a financial document that outlines the differences between two sets of records or accounts, typically to ensure accuracy and consistency in financial reporting. It is commonly used to compare bank statements with a company's cash book or ledger, identifying discrepancies such as outstanding checks or unrecorded deposits. This process helps organizations maintain accurate financial records and aids in detecting errors or fraudulent activities. Ultimately, it serves as a tool for verifying that all financial transactions are properly accounted for.