Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 46 - No. 39)
What is the purpose of bank reconciliation?
To identify and correct errors in the bank statement.
To identify and correct errors in the company's cash records.
To prove the balances of cash are equal.
To explain the differences between the cash balance per the bank statement and the cash balance per the company's books.
Explanation
Bank reconciliation aims to identify the reasons for the difference in the cash balance reported by the bank and the company's records.
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