Bank reconciliation statement is a statement prepared at periodical intervals, with a view to indicated the items which cause disagreement between the balances as per the bank columns of the cash book and the bank pass book on any given date.

Follow the below steps to prepare a bank reconciliation statement:

☛ Take the balance either as per cash book or as per pass book as a starting point.

☛ Compare the items appearing in the bank column of the cash book with the item appearing in the bank pass book.

☛ Tick off the items in the pass book with the entries in the cash book. A list of unticked items either in cash book or pass book will be found.

☛ Add or deduct items from the balance which has been taken as a starting point.

☛ The resultant figure will be the balance as shown by the pass book or vice versa.