Bank Reconciliation Statement

Bank reconciliation statement is a statement prepared to explain the reasons of difference between balance as per cashbook and passbook.


When any trader opens a bank account, bank gives a passbook or a statement to him. In this passbook, different transactions that have been effected by a trader with the bank are recorded.
If a trader has maintained a bank account in his ledger or has maintained a bank column in the cashbook to record bank transactions, the balance of bank account is worked out at regular intervals, weekly, monthly etc. Generally, if the trader and bank both have recorded all transactions correctly, the balance of the bank account in the ledger of a trader and balance as per passbook should tally. But because of the errors committed or omission in recording the transactions or due to some other reasons, if a difference arises between the balances, it becomes necessary to find the reason of that difference.
Thus, after the detection of the reason, a statement is prepared to reconcile the balance as per bank account and as per passbook. This statement is called Bank Reconciliation Statement.

In this course:
+ Introduction
+ Passbook and Cashbook
+ Bank Balance and Bank Overdraft
+ Meaning of Bank Reconciliation Statement
+ Purpose and importance of bank reconciliation statement
+ Reasons for Difference of Bank Balance as per cashbook and passbook
+ Methods of preparing bank reconciliation statement and illustrations
+ Preparing bank reconciliation statement from summary of cashbook and passbook
+ Preparing bank reconciliation statement from rectified balance of cashbook


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204 & 301 Turning Point Complex
Nr. ABS Tower
O.P. Road
Vadodara, Gujarat, India - 390001