WHAT is Meant By Reconciliation?
if there is a dispute between two friends, ir they fail to agree about some matte, the disagreement may Temporarily end the friendship between them .when They became friends again we say they have reconciled With one another. Reconciliation is therefore , resuming of friendly relations as a result of reasonable explanation between them.
if there is any discrepancy between the balance of cash book and that if pass book ,the depositor prepares a statement to explain the causes of discrepancies and to reconcile the two balances. This statement of explanation is called "Bank Reconciliation Statement"
The idea of the bank reconciliation statement is to discover the various things the bank has done in the pass book which cashier was not aware of, put right anything that is wrong and draw up a logical explanation of remaining differences which are not wrong but are they delayed from being right by the time Lag.
your ways of answering is very nice and example is also well understanding by me .
ReplyDelete