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Bank Reconciliation Statement: Detailed Explanation
A bank reconciliation statement is a document that lists the discrepancies between the balance of a company’s bank statement and the balance of its accounting records. The purpose of the reconciliation is to identify and correct any errors so that the two balances match.
The first step in reconciling a bank statement is to compile a list of all the transactions that occurred between the statement date and the date of the accounting records. This can be done by reviewing the company’s checkbook, deposit slips, and other
Bank Reconciliation Statement Meaning
A bank reconciliation statement is a document that shows the difference between the total amount of cash a company has on deposit with a bank and the amount of cash that the company believes it should have according to its records. The reconciliation statement is used to identify any discrepancies and take corrective action.
Importance of Bank Reconciliation Statement
A bank reconciliation statement is a document that shows the difference between the balance reported by a company’s bank and the balance that is reported in the company’s accounting records. The purpose of the bank reconciliation statement is to ensure that the two balances are in agreement.
There are a number of reasons why it is important for a company to reconcile its bank balance. First, if there is a discrepancy between the two balances, it could indicate that the company’s accounting records are not accurate. This
Types of Bank Reconciliation Statement
There are three types of bank reconciliation statement:
1. Cash basis bank reconciliation statement
2. Accrual basis bank reconciliation statement
3. Modified accrual basis bank reconciliation statement