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Explain the basic purposes of bank reconciliation Explain who should perform the bank reconciliation?

Explain the basic purposes of bank reconciliation

Explain who should perform the bank reconciliation?

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Answer :

1. The basic purposes of bank reconciliation is

  • checking of internal accounts.
  • to find the transaction with timing differences and used to adjust and reconcile both bank and company balances.
  • to compare accounting records maintained with records maintained by banks.
  • to find the differences between ecords maintained with records maintained by banks.

2. The bank reconciliation should be generally performed by company accountant or book keeper. It's done on monthly basis.

But it is advisable that the person who perform reconciliation should not be the same person who is authorised to record transactions.

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