Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 20 - No. 44)

What is the first step in the process of bank reconciliation?

Preparing journal entries for all reconciling items.

Comparing the bank statement with the cash book.

Identifying the reasons for differences between the bank and book balances.

Updating the cash book for the bank statement items.

Identifying discrepancies is the initial phase.