the reconsillation statement is a statement of the transactions passed in the Bank book but these are not cleared in the pass book some time we issued cheque but the said cheque is not cleared in the bank on same month further we have deposited some cheques in bank accourdingly the entry has been passed in our books but bank has not cleared the said cheque further it is also reconcillation items can comes that the bank has debited or credited to our account by way of bank charges/ commission but the entries has not taken in the bank books
It is a statement prepared for the purpose of reconciling or agreeing the cash book balance with the pass book balance by making sutiable adjustments for the items responsible for the disagreement
It is process of analyzing two or more statements of account records. If any difference exist between them finding the cause and bringing the statements into agreement and ensuring the reliability.
An example is comparing up-to-date organization bank account statement with a monthly statement from the financial institution holding the account.
