Bank Reconciliation Statement

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A Bank Reconciliation Statement is a statement prepared to identify reasons for the difference between the balance shown by the cash book and the balance shown by the pass book, and to reconcile the t…

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Patil and William Pickles. Patil defines it as a statement prepared mainly to reconcile the difference between the bank balance shown by the cash book and pass book. William Pickles defines it as a st…

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A pass book or bank statement is a copy of the statement of all bank transactions supplied by the bank to the customer or firm periodically. It shows the bank’s record of the customer’s account.

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The bank column of the cash book is the part of the cash book maintained by the customer or firm for recording deposits and withdrawals in the bank account. Deposits are entered on the debit side and …

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They rarely tally because some transactions are recorded in one book but not yet in the other due to timing differences. The same transaction should match in principle, but the debit or credit nature …

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It causes the cash book to show a lesser balance than the pass book. In the effect table, it decreases the cash book balance and increases the pass book balance.

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They cause the cash book to show a higher balance than the pass book. In the effect table, they increase the cash book balance and decrease the pass book balance.

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It has the same effect as a cheque deposited but not yet credited. The cash book shows a higher balance than the pass book. In the effect table, cash book increases and pass book decreases.