New to Accounting: Can Someone Explain How to Match Bank Statements with Reconciliation?

I am Connie. I just joined this forum recently. This forum is very interesting; we can share our opinions, and it has helped me a lot.

I am new to the accounting field. Can somebody help or teach me how to do bank reconciliation in an accounting way? Do the bank statements for every month have to tally with our bank reconciliation from our account? If yes, how do we do that?

Please advise me. Thank you in advance. 🤔
Connie

I am sending you a chapter that will help you out in finding the basics of Bank Reconciliation.

Always welcomed for further queries.

My personal email is [Login to view].

Regards,
Mannu

Bank reconciliation is very simple. It's the difference between the bank book and the passbook, which means the difference between your book and the passbook. For example, if your bank balance is Rs. 20,000/- at the end of the month on 28th Sep, and you issue a cheque for Rs. 15,000/- which is cleared only on 3rd Oct, you have to prepare the balance sheet as of 30th Sep.

Your book (Bank Book):
- Opening Balance: 20,000
- Cheque Issued: 15,000
- Balance as per your book: 5,000

Passbook:
- Opening Balance: 20,000
- Still Rs. 20,000

You need to identify which cheque has been cleared. That's all.

Regards,
E. Shankar

If you have any doubts, please send them to the email address: 1976shan@gmail.com.