Question

Which of the following is not the salient features of bank reconciliation statement?

• A. Reconciliation is done by the bankers.
• B. Reconciliation statement will help in finding the person doing any fraud.
• C. Any undue delay in the clearance of cheques will be shown up by the reconciliation.
• D. All of above.

Answer 1

Answer: (A)

Reconciliation is done by the bankers.

Bank reconciliation statement is a statement prepared by the bank account holder on a particular day to reconcile the bank balance as per cash book with the balance as per passbook showing entries causing the difference between the two balances.

Following are the features of bank reconciliation statement:

1. It is prepared by the customer i.e., holder of the account.

2.It contains a complete and satisfactory explanation of the difference in balance as per the cash book and passbook.

3.Normally it is prepared on closing date of accounts.

4.It is neither journal nor ledger.