Page 1 - Lesson Note

CLASS – XI

ACCOUNTANCY

LESSON NOTE – BANK RECONCILATION STATEMENT

Meaning of Bank Reconciliation Statement:

 Bank Reconciliation Statement is a record book of the transactions

of a bank account.

 This statement helps the account holders to check and keep track

of their funds and update the transaction record that they have

made.

 The balance mentioned in the bank passbook of the statement

must tally with the balance mentioned in the cash book.

 In the statement, all the deposit will be shown in the credit column

and withdrawals will be shown in the debit column.

 However, if the withdrawal exceeds deposit it will show a debit
balance (overdraft).

Difference between cash book and Pass book :

Basis CASH BOOK PASS BOOK
Meaning It is a book contain a It is a copy of account in
record of cash and bank the books of the bank
transaction of the business. showing of the details of
the transaction with the
accountholder
Prepared by All the transactions are All the transaction are
recorded by the business recorded by the bank
Significance of Debit balance is a positive Debit balance is a negative
balance balance while credit balance while credit balance
balance is negative is positive balance
dependence It depends on passbook as Pass book does not depend