Bank Reconciliation Statement is prepared to detect the errors that take place in accounting.
State whether the following statement are True or False with reason :
Bank Reconciliation Statement is prepared to detect the errors that take place in accounting.
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This statement is True.
A businessman maintains a cash book with a bank column to record his bank transactions whereas the bank also maintains a customer’s ledger account and issues him a Bank statement. There could be differences as per the bank balance in the cash book and bank balance in the passbook. To detect the errors that take place in accounting Bank Reconciliation Statement is prepared.
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