Bank Reconciliation Statement: Meaning, Preparation and Importance

The compilation of these Accountancy Notes makes students exam preparation simpler and organised.

Bank Reconciliation Statement

In accounting, we have been taught that two corresponding accounts always match, other than when there is an error. However, this is not true for your cashbook and your passbook. At any given dates there may be deposits in transit or cheques outstanding which will not let the cash account and bank account tally. Hence, we prepare a Bank Reconciliation Statement. Let us take a look.