BANK RECONCILIATION STATEMENT

Cash book (Bank account) Bank deposit a/c in Bank (MCB,SBM)

In books (Ledger) of the business In Bank (mcb, sbm, Barclays)

Receipt: Debit balance Receipt (deposit): Cr balance

Payment: Credit balance Payment (Withdrawal): Dr Balance

The bank will regularly sent a Bank

Statement to the business which gives
details of money deposits and money
withdrawn.

The business will compare entries in the cash book (in business books) against the bank statement.
The balance on cash book must always be equal to the balance on the bank statement.