Banks usually maintain a record of all checking account transactions. A summary of all transactions, called bank
statement, is mailed to the company (depositor) or made available online, usually each month. The bank statement shows the beginning balance, additions, deductions and the ending balance of the depositor’s account.
bank reconciliation is a statement which brings into agreement the cash balance per book and cash balance per bank (Valix, 2017).
bank reconciliation is an analysis of the items and amounts that result in the cash balance reported in the bank statement (balance per bank statement) to differ from the balance of the cash
account in the ledger (balance per books). The adjusted cash balance determined in the bank reconciliation is reported on the balance sheet. It is usually prepared on a monthly basis as banks provide their clients bank statements at the end of every month.
At the end of the month, there are differences in the balance per book with the balance per bank. This is due to timing differences caused by items collectively called reconcilingitems.
