Bank Reconciliation

 Brief Introduction

Bank Reconciliation is a statement in which we reconcile or matches the company’s maintained books or ledger with its corresponding bank statement. Bank Reconciliation is completed at specific regular intervals to ensure that the company’s maintained books records are correct. It also helps to detect fraud & any cash manipulations.

Company maintains the books of Bank transactions as well as cash transactions, which show the balances of bank and Cash. As Bank also maintains a book by name of Bank statement in which credit (Cr.) is deposit side while debit (Dr.) is withdrawal side & these transactions are recorded at regular specific intervals.

Sometimes these balances of the company’s maintained books & bank statement don’t match, The company needs to find out the reason for the discrepancy & reconcile the differences.  

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