In: Accounting
Describe a bank reconciliation and discuss its purpose.
Bank Reconciliation Statement
??It is a statement prepared for reconciling the balances of bank as per passbook and balances of bank as per cashbook?. This difference generally arises due to :
Purpose of BRS
?One need to be careful as from which balance initiative is taken up ie Balance as per Passbook (Bank statement) or Balance as per Cashbook.
Note: as no word limit was mentioned, so answer is being made in crux, still if you have any query you are welcome!