Question

What is true about a reconciliation Statement? It is a statement _________.

• A. sent by the bank when we have made and error
• B. sent by the bank when we the account is overdrawn
• C. drawn up by the bank to verify the cash book
• D. drawn up by us to verify our cash book balance with the bank statement balance

Answer 1

The correct option is D drawn up by us to verify our cash book balance with the bank statement balance

Bank does not send any statement like a 'reconciliation statement' but only provides a 'bank statement'/ 'bank pass book' which gives us the details of transactions undertaken during the period. In fact, bank reconciliation statement is prepared by the business, only to verify the balance as per bank column of cash book and bank statement.It is an important statement for the business.