BANKING AFFAIRS

Detailed explanation-1: -A bank reconciliation is the process of matching the balances in an entity’s accounting records for a cash account to the corresponding information on a bank statement. The goal of this process is to ascertain the differences between the two, and to book changes to the accounting records as appropriate.

Detailed explanation-2: -A bank reconciliation statement summarizes banking and business activity, reconciling an entity’s bank account with its financial records. Bank reconciliation statements confirm that payments have been processed and cash collections have been deposited into a bank account.

Detailed explanation-3: -Bank Reconciliation. The process of bringing the cash balance reported on the bank statement into agreement with the balance in the depositor’s checkbook: also referred to as reconciling the bank statement.

Detailed explanation-4: -Balancing your checkbook, which is also known as reconciling your account, is basically about making sure that the records you have kept for your financial transactions match those the bank lists on your statement.