what is the main objective of preparing a bank reconciliation statement
Answers
Bank reconciliation statements ensure payments have been processed and cash collections have been deposited into the bank. The reconciliation statement helps identify differences between the bank balance and book balance, in order to process necessary adjustments or corrections.
Answer:
The main objective of bank reconciliation is to reflect the accurate bank balance in the book of account of business i.e maintains accuracy in bank balance by checking the correctness of entries in the book of account.
Explanation:
Bank reconciliation statement:
A Bank reconciliation statement or (BRS) is a statement prepared to reconcile the bank statement of business with their book of accounts.
It helps in maintaining the accuracy in actual bank balance by identifying the difference between bank balance and book balance and making the necessary adjustment to maintain accuracy.
The difference can occur due some to the following reasons:
- Due to the difference in the amount deposited and credited by cheques.
- Due to dishonor of cheques.
- Amount in transit can cause a difference.
- Due to some errors in recording transactions
For more information see:
https://brainly.in/question/15817047
https://brainly.in/question/34614641