Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 24 - No. 12)
In which circumstances will a bank reconciliation statement be prepared?
When the bank column and the cash column are used in the cash book.
When there are differences between the cash book balance and the bank statement balance.
Only when a business deals with cash transactions.
To find out the exact bank balance.
Explanation
A bank reconciliation statement is prepared to reconcile differences between the cash book and the bank statement.
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