Accountancy: Bank Reconciliation Statement: Significance and Preparing Bank Reconciliation Statement

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In the cutting-edge times, business works in a money related arrangement of the nation wherein it utilizes the offices and administrations gave by the banks. A large portion of the business houses lead dominant part of exchanges through ledger. Business endeavours record exchanges with the bank in the bank segments of the money book. Bank likewise keeps up records of clients in its record which are provided to clients by the bank as an announcement or a book called pass book. In this way, it gets important to contrast and check the exchanges done and the bank and those recorded in the books of record of association. Bank compromise explanation is an apparatus for such correlation and showing up at the causes and measure of distinction between the two.

Significance of Bank Reconciliation Statement

  • It highlights the difference between the balance as per cash book and pass book.

  • It eliminates the fraud by the staff dealing with cash and cash bring.

  • It helps to figure out the actual cash position of the bank balance.

Following Steps Are to be Followed for Preparing the Bank Reconciliation Statement

Preparing Bank Reconciliation Statement

Preparing Bank Reconciliation Statement

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