BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -The reconciliation statement helps identify differences between the bank balance and the book balance to process necessary adjustments or corrections. An accountant typically processes reconciliation statements once per month.

Detailed explanation-2: -The bank statement is prepared and provided by banks to its clients, whereas the bank reconcilation is prepared by the clients themselves in order to match the bank’s account movement and its balance on the organization’s / client’s books.

Detailed explanation-3: -To do a bank reconciliation you would match the cash balances on the balance sheet to the corresponding amount on your bank statement, determining the differences between the two in order to make changes to the accounting records, resolve any discrepancies and identify fraudulent transactions.

Detailed explanation-4: -Bank Reconciliation: Bank Reconciliation is the process of comparing the cash balances reported per book of accounts and the amount reported in the bank statement. Any variance noted should be addressed.

Detailed explanation-5: -Common adjustments are deposits in transit, outstanding checks, nonsufficient funds, bank collections, interest income, service charges, and errors.