Question

differnce betweem bank statement and bank reconciliation statement?

Answer 1

A bank statement is the one issued by the Bank showing the transactions in your account. You can ask for a statement for the period between say April 1st to 30th Sept., 09. It gives you all the transactions that have gone through your account. A bank reconciliation statement is one that you prepare in your office comparing the transactions in the Bank statement with the actual transaction that you have put through. For example , if you have issued a cheque in favour of your friend for Rs.5000 on 23rd Sep, 09 and he has not yet presented to your bank for payment; the bank statement will not show this amount as debit. Whereas you have to reconcile this amount and tally your account with the Bank statement. ie; deduct this Rs.5000 from the bank balance shown in Bank statement. This process is called Reconciliation and it gives the true picture of your Financial position after accounting for all credits and debits that you have put through but not yet carried out by the bank.