How to do a Bank Reconciliation Statement practically? | Bank Reconciliation Statement in Bangla:
A bank reconciliation statement summarizes banking and business activity, reconciling an entity's bank account with its financial records. Bank reconciliation statements confirm that payments have been processed and cash collections have been deposited into a bank account.
Bank reconciliations are an essential internal control tool and are necessary in preventing and detecting fraud. They also help identify accounting and bank errors by providing explanations of the differences between the accounting record's cash balances and the bank balance position per the bank statement.
Bank Reconciliation: A Step-by-Step Guide:
1. COMPARE THE DEPOSITS. Match the deposits in the business records with those in the bank statement.
2. ADJUST THE BANK STATEMENTS. Adjust the balance on the bank statements to the corrected balance.
3. ADJUST THE CASH ACCOUNT.
4. COMPARE THE BALANCES.
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