Even when it’s is not compulsory to prepare Bank Reconciliation Stat

1.	Even when it’s is not compulsory to prepare Bank Reconciliation Statement; It is prepared on any date decided by firm to check that all transactions relating to money deposited with and withdrawn from bank are properly recorded by the firm’s personnel. What purpose does Bank Reconciliation Statement solve?
Answer» It helps in detecting, if there is any error in recording the transactions and ascertaining the correct bank balance on a particular date. Hence following purposes are solved: (i) Error of rectification- Errors that have been committed on part of bank or business is disclosed in BRS. (ii) Reduction in chances of embezzlement- Regular Cheque on office staff can be done by periodical comparison. (iii) Completion of Cash Book- Information about bank charges, direct payment, direct

Even when it’s is not compulsory to prepare Bank Reconciliation Statement; It is prepared on any date decided by firm to check that all transactions relating to money deposited with and withdrawn from bank are properly recorded by the firm’s personnel. What purpose does Bank Reconciliation Statement solve?

Answer»

It helps in detecting, if there is any error in recording the transactions and ascertaining the correct bank balance on a particular date.

Hence following purposes are solved:

(i) Error of rectification- Errors that have been committed on part of bank or business is disclosed in BRS.

(ii) Reduction in chances of embezzlement- Regular Cheque on office staff can be done by periodical comparison.

(iii) Completion of Cash Book- Information about bank charges, direct payment, direct

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