Question

Bank Reconciliation statement is ___________.

• A. ledger account
• B. part of the cash book
• C. a separate statement
• D. a sub division of the journal

Answer 1

The correct option is C a separate statement

A bank reconciliation statement is prepared to reconcile the bank balance in bank pass book with the balance in the cash book maintained by the business entity. The various causes of differences are given effect in order to match the balances. Therefore, it is just a separate statement to reconcile the transaction and is not related to financial accounting.