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Chapter 9

Bank reconciliation statements

2.1 Purpose of a bank reconciliation

The purpose of a bank reconciliation statement is to check the
accuracy of an organisation’s bank account record by comparing
it with the record of the account held by the bank.

When attempting to reconcile the bank statement with the cash book, there are three
differences between the cash book and the bank statement:

 unrecorded items

 timing differences

 errors.

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