Question

Which of the following is NOT a function of bank reconciliation statement?
a. To update omitted entries into the bank statement
b. To check for errors in balance sheet
c. To reconcile the difference in bank statement and cash book
d. To update omitted entries into the cash book​

Answer 1

Answer- To check for errors in balance sheet

Answer 2

1. The goal of preparing a bank reconciliation statement is to start with the balance of either the pass book or the cash book, add or subtract certain entries, and end up with the balance of the other book, i.e., if the cash book balance is the starting point, we should end up with the balance of the pass book after reconciling.
2. There is no way for us to update ommitted entries into the cash book.

Hence, option D is correct.

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