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Is there any significance between Bank Reconciliation and
Account Reconciliation in Accounts?
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Answer / lxmi1972
Yes. There is a small difference between the Bank
Reconciliation and Account Reconciliation.
In Bank Reconciliations, Bank statement and the Bank books
are matched and the open items will be arrived at whereas
in the Account Recociliation, General Ledger, external
evidences like Debit Memos,Credit Memos, are verified and
the reconciliation is arrived at.
| Is This Answer Correct ? | 2 Yes | 0 No |
Answer / h.r. sreepada bhagi
I think the question is about significance of Bank
Reconciliation & Accounts Reconciliation (Receivable A/cs &
Payable A/cs).
Purpose of Bank Reconciliation is to ensure that all bank
transactions are accounted in the books & no wrong or
unrelated transaction is entered either in the bank or in
the books of the company. In other words it's the periodical
exercise to ensure correctness of transaction entries at the
end of the company & the concerned bank.
To ensure all transactions are entered properly in the books
of the Company as well as that of the Debtors or the
Creditors, it's necessary to reconcile the accounts with
that of the Debtors & Creditors. In case any transaction is
not entered at the other end, to take necessary action to
have it rectified & ensure agreement on both sides as to the
balance at the end of any accounting period.
Both above are significant from the view point of preparing
and presenting True & Fair view of the P&L A/c for
accounting period and Balance at the end of that accounting
period. Both are meant to reconcile balances as per the
Accounts maintained by the company & the other related aprty
9Bank, Debtor or Creditor)
| Is This Answer Correct ? | 1 Yes | 0 No |
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