Bank Reconciliation
Explain what do you meant by the Bank Reconciliation? And how we can do its entry in the busy Software?
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A Bank reconciliation states cross verifying the entries within the cash book (bank balance) along with that of the pass book. Generally, reasons for disagreement of the cash book with that of pass book are listed as follows:
a) Cheques deposited however, not collected by the bank.
b) Cheques issued however not presented for the payment.
c) Amounts recorded only in the pass book till date (this doesn't mean that they must not be recorded in the cash book, they must also be recorded however, they are not yet recorded like bank charges, incomes received by the banks directly by the power of standing order and so on.
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