Accountancy · Ch 5 — Bank Reconciliation Statement
Terms Introduced in the Chapter
Terms Introduced in the Chapter
The key terms introduced in this chapter, with a short meanin …
Definition 1Bank Reconciliation Statement
A statement prepared on a particular date to reconcile the bank balance shown by the firm's cash book with the balance shown by the passbook (or bank statement), by listing and explaining the items that cause the two balances to differ. It is not a ledger account and passes no jo …
Definition 2Cash book and Passbook
The cash book is the firm's own record of its cash and bank transactions, maintained by the business and showing a debit balance when money is held at the bank. The passbook (bank statement) is the bank's copy of the same account, maintained by the bank, in which deposits appear as credits and withdrawals as debit …