MANAGEMENT

Detailed explanation-1: -Bank reconciliation statements ensure that payments have been processed and cash collections have been deposited into the bank. The reconciliation statement helps identify differences between the bank balance and the book balance to process necessary adjustments or corrections.

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. If not, you need to figure out why.

Detailed explanation-3: -Checkbooks are where we get the phrase “balancing a checkbook.” It’s also called reconciling an account. Basically, it just means you’re making sure the records you’ve kept for all your spending and income match what the bank says on your physical or online statement. Budget every dollar, every month.

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.

Detailed explanation-5: -Example #1: Cash Book Balance More Than Bank However, the balance as per cash book as on 31st march 2021 is $2210. A check of $500 was deposited, but it is not yet processed by the bank. Bank charges of $60 were recorded in the passbook, but not in the cash book. Checks worth $300 were issued, but not presented.