The Bank Reconciliation Statement is prepared?
Correct answer: D. To bring out the reasons for the difference between the Balance as per Cash Book and the Balance as per Bank Statement
- A. To rectify the mistakes in the Cash Book
- B. To arrive at the Bank Balance
- C. To arrive at the Cash Balance
- D. To bring out the reasons for the difference between the Balance as per Cash Book and the Balance as per Bank Statement
Explanation
The statement explains why the balance in the cash book differs from the balance in the bank statement. It does not itself rectify cash-book errors or calculate a new cash balance.
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About Accounting Principles
Accounting principles explain the rules used to record, classify and report business transactions. Coverage includes the accounting equation, double-entry system, accrual and cash bases, matching and prudence concepts, consistency, going concern, business entity, and the difference between capital and revenue items.
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