do you have any idea about bank reconciliation?

Answer 1

Introduction to Bank Reconciliation - click on the link for an excellent explanation of the bank recon, complete with illustrations.

Answer 2

For example, you received your bank statement which shows a balance of $1,000. This may not be your actual balance. You may have some check issued (say $200) but not yet cleared the bank. You may have some deposit (say $400) after the statement date which was not shown on the statement.

Now you would do the bank reconciliation to get the real balance:

Bank statement balance: $1,000.00
Checks issued but not cleared - 200.00
Deposit not shown on statement + 400.00
Account balance $1,200.00

This balance should not match your accounting record.

Answer 3

Is is simply agreeing your accounting records to the balance on your bank account. Everything on the Bank Account has to have been double entry posted to your accounts.

It is one of the primary controls on accounts.