what is a Bank reconsiliation statement? what is the proforma of bank reconsiliation statement?where does it a

Question

Bank reconsiliation statement

Answer 1

Bank does not send any reconciliation statement. They send only a statement (It can be, Weekly or Monthly).

It is you who will reconcile the bank statement with your own statement ( the ledger account). To verify any discrepancy or wrong posting.

Answer 2

Bank reconciliation statement is made by the account holder. 1. Balance as per bank statement. 2. Add - cheques deposited but not credited by hte bank. 3. Deduct - cheques issued, but not yet paid by hte bank. 4. Deduct - debits made by the bank not debited in books. The total of these 4 figures must tally with hte balance shown in your account books.

Answer 3

Bank reconciliation means balancing your book balance with your bank balance. It happens because there are deposit made and checks issued that are not yet reflected in your bank statement at the end of the month ergo you need to balance them hence bank reconciliation.