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Bank Reconciliation Statement is

  • A.A part of the cash book
  • B.A ledger account
  • C.A part of the bank account
  • D.A statement prepared to find out the causes for difference between bank column of cash book and pass book

Answer: D

It is a statement prepared to find the causes of the difference between the cash book and the pass book.

The two rarely agree at a given date because of cheques issued but not presented, cheques deposited but not cleared, and bank charges or interest not yet entered. The reconciliation statement lists these items and is not itself part of the books of account.

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