Question

Bank reconciliation should be prepared for what period of time

Answer 1

Bank Reconciliation should be prepared monthly. Because:

1. It helps in having a good control over cash

2. Any omission or error in Bank A/c, may result in omission or error in another A/c too as mostly double entry system is followed. So it helps in finding errors and omissions on time.

3. To check that the amount shown in balance sheet is correct amount.