Bank Reconciliation, Partnership & Non-Profit Accounting
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Bank Reconciliation and Partnership Accounting
1.2.1 Meaning of a Bank Reconciliation Statement
A bank reconciliation statement shows the causes of disagreement between the balance shown by the Bank Pass Book and the balance shown in the cash book (under the Bank column) at the end of a specific period or month. Generally, it is prepared at the end of every month by the bank. If the transactions with the bank are large in number, then a Bank Reconciliation Statement is prepared at the end of every week.
In short, a bank reconciliation statement is prepared to verify the balance shown by the Bank Pass Book and the balance shown in the cash book.
1.2.3 Need and Importance of Preparing a Bank Reconciliation Statement
It is necessary for a business... Continue reading "Bank Reconciliation, Partnership & Non-Profit Accounting" »