What is a Bank Reconciliation?
To complete a Bank Reconciliation Statement, reconcile between the business’ ‘cash at bank’ records and the bank’s records from the Bank Statement.
The Bank Reconciliation Statement is a check from the business point of view to the banks records.
The cash at bank ledger account is compared to the bank statement. So unknown items might include bank fees and other electronic deposits.
The bank reconciliation is now in practice usually completed with online banking records. However it is very useful to understand the bank reconciliation theory behind the computerised accounting practice.
Because the topic is tricky, learn more about how a bank reconciliation works take this Bank Reconciliation Tutorial Course Bank Reconciliation Tutorial Course
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