Harsha Lal- ACW Accounts at edumarz
Ans- It is very important to reconcile because of the following reasons:-
It helps to detect the errors.
It helps in identifying and preventing any further frauds.
Helps in arriving at the actual balances.
It helps to identify any unreasonable delay in the clearance of the cheque.
It helps to update the cash book by identifying entries which are not yet recorded.
Helps in identifying the reasons for differences in the balances of the cash book of the firm and bank pass book.