Answer Posted / ishav

when the accounts for the same trasactions are mainted at
two differennt places, there is bound be a differnce
between the balance of them, and anylizing the reasons for
such difference is known as reconciliation.

Now Bank Reconcilitaion Statement

Records for the bank related transactions are maintained at
our end & bank's end & and at the end of a particular
period there may be some differnce in the balance as per
our records and bank's record due to 2 mains reasons
1.) Entries recorded in our books and not in Bank Records
2.) Entries recorded by Bank and not recorded by us.

Now analyzing such reasons and presenting them in a legible
format is Bank Reconciliation Statements.

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