Harsha Lal- ACW Accounts at edumarz
Ans- Bank Reconciliation Statement is a statement which shows the differences which arise in the bank statement balance and cash book balance of the depositors. We need to rectify the errors and balance both the books to arrive at the actual figures.It is a very useful tool to detect any flaws. The bank statement deals with huge transactions every day. It should be error free as Income tax returns are filed every year.If the errors are not detected at an early stage and rectified then it may lead to greater problems in other accounting books. So, lastly I would state that before closing the transactions in the banking books, reconciliation should be done so that the closing is right and safe.