can you please explain me bank reconciliation and how we make it


1 Answer(s)


MEANING-Bank reconciliation statement is a statement prepared mainly to reconcile the difference between the ‘Bank Balance’ shown by the Cash book and Bank statement.

METHODS-1)Adjusted balance Method
2)Book to Bank Method
3)Bank to Book Method

Proper reconciliation of bank statements is vital for any small business. Even if you don't have an accountant on staff, this procedure must be done monthly. Whether you use financial accounting software or you simply keep track of your bank records, double-check that everything adds up.It also helps in catching errors, following up on transactions,eye on company's working, preventing losses,etc.

hope this helps..