Question

A bank reconciliation statement can be prepared by ___________.

• A. Partnership firm
• B. Sole proprietary concern
• C. Companies
• D. All fo the above

Answer 1

Answer: (D)

All fo the above

Bank Reconciliation is a business exercise and not a compulsion by any act or rule. This reconciliation helps in knowing where is the business money going and how much is in form of liquid cash and lying in the bank. If the balances does not tally there are possibilities of fraud or error.

Hence, be it Partnership firm, sole traders or corporate, they need to know the status of their money and bank reconciliation helps in determining it.