Define bank reconciliation and bank statement.

Bank reconciliation is the process of comparing and matching the transactions recorded in a company's accounting records with those shown on the bank statement. This is done to ensure that the company's records accurately reflect the transactions that have occurred and to identify any discrepancies that need to be investigated and resolved.

A bank statement is a document provided by a bank that shows all the transactions that have occurred in a particular account over a specific period of time. This includes deposits, withdrawals, checks cleared, and any fees or charges that have been applied to the account. The bank statement is an important tool for reconciling a company's accounting records with the bank's records to ensure accuracy and prevent fraud.

Bank Reconciliation

Bank reconciliation is the process of matching records between a company's accounting records and the records of the bank where the company has an account. The purpose of bank reconciliation is to ensure that the two sets of records are accurate and in agreement, and to identify any discrepancies that may exist.

Bank Statement

A bank statement is a document issued by a bank to its customers that shows the activity on their account over a specific period of time, typically one month. The bank statement includes information such as:

- Beginning balance
- Deposits received
- Checks written
- Withdrawals
- Fees and charges
- Ending balance