Bank Reconciliation Question:

Answer #1This statement is prepared for a special purpose and once in a month. It is prepared with a view to indicate items which cause difference between the balances as per the bank columns of the cash book and the bank pass book at a particular date.

Answer #2Bank reconciliation is a key control for bank balances. The bank reconciliation process helps to detect and prevent fraud, errors, omissions and misstatements that may not report bank balances fairly.