What is bank reconciliation statement and why is it prepared?

Asked by Topperlearning User | 15th Jul, 2016, 04:31: PM

Expert Answer:

Bank reconciliation statement is prepared by a person who is holding an account with a bank on a particular date. Basically, it helps to reconcile the bank balance as per cash book with the balance as per bank pass book and shows those entries which caused differences between the two balances.

Bank reconciliation statement is prepared to show the reason and causes of differences in balances and pass the required entries in the books of account.

Answered by  | 15th Jul, 2016, 06:31: PM