Bank Reconciliation Statement
In the NCERT Financial Accounting textbook for Class 11, this topic explains why the cash book and the bank passbook can show different balances on the same date. You study the usual causes of difference, such as cheques issued but not yet presented, cheques deposited but not yet cleared, bank charges, interest credited by the bank, and direct deposits or standing instructions recorded by only one side. You then learn how to prepare a bank reconciliation statement from either starting balance so both records agree.
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