Illustrate bank reconciliation statement
Write a short note on the term ‘bank reconciliation statement’?
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Bank reconciliation statement is a statement arranged at periodical intervals, through a view to indicate the items that cause disagreement among the balances as per the bank columns of the cash book and the bank pass book on any given date. There are the steps to prepare a bank reconciliation statement:
- Take the balance either as per cash book or as per pass book as a starting point.
- Contrast the items appearing in the bank column of the cash book with the item appearing in the bank pass book.
- Mark the items in the pass book with the entries in the cash book. A list of unpicked items either in cash book or pass book will be found.
- Deduct or add items from the balance that has been taken as a starting point.
- The resultant figure will be the balance as shown through the pass book or vice-versa.
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