Bank Reconciliation Statement: Meaning/Definition - SS1 Accounting Lesson Note
A bank reconciliation statement is a document that helps you compare the records of your bank account transactions with the records held by your bank. A bank reconciliation statement is a valuable tool to help you manage your finances effectively and ensure that your account is always balanced and accurate. It helps us identify any discrepancies, such as deposits or withdrawals that have not yet cleared, bank fees or charges that you may not have recorded, or errors in your records. Below is a format for the preparation of a bank reconciliation statement
Bank reconciliation statement
As of 31 March 2022
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Balance as per adjusted cash book Add unpresented cheques Less uncredited cheques Add or subtract bank errors Balance as per bank statement |
XX XX XX (X) XX X XX |
By comparing the two records, you can ensure that your account is accurate and up-to-date, and avoid any potential overdrafts, bounced checks, or other issues that can arise if there are discrepancies between your records and the bank's records.
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