Conciliation example sentences

Why not first record such items in the cash book to work out the adjusted balance (also known as amended balance) of the cash book and then prepare the bank reconciliation statement.Hence, we have to first ascertain the causes of difference thereof and then reflect them in a statement called Bank Reconciliation Statement to reconcile (tally) the two balances.An overdraft is treated as negative figureure on a bank reconciliation statement.To prepare bank reconciliation statement, under this approach, the balance as per cash book or as per passbook is the starting item.A business firm periodically prepares a bank reconciliation statement to reconcile the bank balance as per the cash book with the passbook as these two show different balances for various reasons.If the two balances differ, the entries in both the books are compared and the items on account of which the difference has arisen are ascertained with the respective amounts involved so that the bank reconciliation statement may be prepared.In order to prepare a bank reconciliation statement we need to have a bank balance as per the cash book and a bank statement as on a particular day along with details of both the books.The firm's cash book for July 2005 which Kamlesh has just finished entering and balancing for the month is shown in exhibit Help Kamlesh to prepare the bank reconciliation statement.In fact, this is exactly what is done in practice whereby only those items which cause the difference on account of the time gap in recording appear in bank reconciliation statement.The following solved illustration will help you understand the preparation of bank reconciliation statement when there is an overdraft.So far we have dealt with bank reconciliation statement where bank balances has been positive – i.e., there has been money in the bank account.