ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -A bank reconciliation statement is a document prepared by a company that shows its recorded bank account balance matches the balance the bank lists. This statement includes all transactions, such as deposits and withdrawals, from a given timeframe.

Detailed explanation-2: -Bank reconciliation is a way to double-check your bookkeeping. You do it by comparing your business accounts against your bank statements. Both sets of records should agree with each other.

Detailed explanation-3: -General ledger: A general ledger is a record of all debits and credits for a company. It’s used in the bank reconciliation process to match transactions in the monthly bank statement.

Detailed explanation-4: -There are five primary types of account reconciliation: bank reconciliation, vendor reconciliation, business-specific reconciliation, intercompany reconciliation, and customer reconciliation. And they all help you keep your balances in order.