Reconciliation statement is a statement where we reconcile the statement with pass book and cash book. In other words its the detection of an errors but not rectification of errors.
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You should have recorded in your cash books all amounts you ve actually received and payments you ve actually made. However the cash books may be incomplete as your bank may have put extra transactions through your account such as:
bank fees or interest charges
direct debits (payments) and direct credits (receipts).
Doing a regular bank reconciliation will allow you to:
take into account any extra transactions your bank puts through your account and
check and record any errors or omissions.
By regularly doing a bank reconciliation (say monthly) you can be more confident that your records contain all the information you need to prepare your income tax return and activity statements.
Reconciliation is the statement prepared at a given period inorder to reconcile the cash book with the passbook to ensure the correctness of the balances
Reconciliation is the way to make a check of your regeivable and payment through a regular intererval which will ensure you to know the correct position of your bank account.
Reconciliation statement is a statement where we reconcile the statement with pass book and cash book. In other words its the detection of an errors but not rectification of errors.
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