ACCOUNTING UNIT IV Q11

Accounting Unit IV Q11

Accounting Unit IV Q11

A Bank Reconciliation Statement is a statement which sets off the differences between bank balance and cash book balance. It considers all the factors which a banker or a cashier missed while taking entries in the books. It is prepared by an organization`s accountant at the end of the period i.e. day end, month end, quarter end, yearend etc.

Its purpose is to record all the entries that are outstanding or unrecorded due to some reason. For example: If a bank debits collection charges or credits interest amount to the organization`s account, it ...