Question
What is a Bank Reconciliation Statement? Explain the purpose of preparing such a statement.
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Answer
Bank Reconciliation Statement is a statement prepared by the account holder on a particular date to reconcile the bank balance as per Cash Book with the balance as per Bank Statement or Bank Pass Book showing entries because of which differences between the two balances exist.
Bank reconciliation statement is prepared to find out the reasons for difference in Bank balance as per Cash Book and Balance as per Pass Book.
Bank reconciliation statement is prepared to find out the reasons for difference in Bank balance as per Cash Book and Balance as per Pass Book.
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