Bank Reconciliation Statement

A bank reconciliation statement is prepared

A bank reconciliation statement is prepared to reconcile the difference between the bank balance shown by the cash book and the pass book. It explains

The bank column of the cash

The bank column of the cash book records deposits and withdrawals in the bank account. The pass book or bank statement is the copy of all bank transac

Balances rarely tally because some items

Balances rarely tally because some items are recorded in one book but not yet in the other, or because of wrong entries and omissions. Timing differen

When a cheque is issued

When a cheque is issued and recorded in the cash book but not yet presented to the bank, the cash book balance becomes lower than the pass book balanc

When a cheque is deposited

When a cheque is deposited in the bank and entered in the cash book but not yet credited by the bank, the cash book balance becomes higher than the pa