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Answer Posted / kalpana
Bank reconciliation is a statement that is prepared in some
intervals like monthly, for showing the causes of why there
is mismatch between cash book and pass book.
The examples for Mismatch are:
Cheques issued but not cleared, cheques deposited but not
credited, interest on deposits which is credited by bank but
co. don't know, monthly expenditure which is paid through
banks but co. don't know, cheques deposited by outsiders and
credited but co. not having the information etc.
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