ASSIGNMENT

Unit V: Bank Reconciliation Statement

1. What is Bank Reconciliation Statement? What is the purpose of preparing such a
statement?

The bank balance as per pass book can be expected to be equal to the bank balance as
shown by the cash book. But sometimes these two balances generally differ. If they do not
agree, it is necessary to reconcile them. For this purpose, a statement is prepared which
shows all the cause of difference. This statement is calling as BANK RECONCILIATION
STATEMENT

Purpose: The process of reconciliation ensures the accuracy and validity of financial
information. Also, a proper reconciliation process ensures that unauthorized changes have
not occurred to transactions during processing.

2. Draw the format of Bank Reconciliation Statement? Explain difference between

bank statement and Reconciliation Statement?

Particulars Amount(plus) Amount(minus)

Balance as per cash book 32500
Cheques deposited but not 8,900
credited by the bank
Cheques issued but not 12,500
presented for payment
Dividend received through ECS 5,000
Bank charges debited by bank 400
Balance as per pass book 40,700
Total 50000 50000

A bank statement is a document from the bank that covers a specific time period, usually a month, that
shows all the activity on your account for a time period. The activity shown on your bank statement
includes information such as processed deductions and deposits, your average daily balance, and any
interest earned.
A bank reconciliation statement could be defined as the summary of the banking and business accounts
that reconciles a company's bank account with its financial record