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    Question Question What is reconciliation?

    Answer Answer You should have recorded in your cash books all amounts you?ve actually received and payments you?ve actually made. However, the cash books may be incomplete as your bank may have put extra transactions through your account, such as:

    bank fees or interest charges
    direct debits (payments) and direct credits (receipts).
    Doing a regular bank reconciliation will allow you to:

    take into account any extra transactions your bank puts through your account, and
    check and record any errors or omissions.
    By regularly doing a bank reconciliation (say monthly) you can be more confident that your records contain all the information you need to prepare your income tax return and activity statements.


    any unclaimed transaction in your book remove it, extra transaction in bank add it, now your bank book and bank statement tally

    Answered By: Sivaraman R    Date: 8/10/2007

    Reconciliation is the process of comparing any two set of books of Account / records. It is not just limited to Bank reconciliation,but has can be applied to any two related set of record, having variance in balances.

    Answered By: Pankaj Acharya    Date: 12/17/2007

    reconciling balance as shown by bank pass book with cash book.

    Answered By: chaitanya    Date: 2/20/2008

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