Difference between Bank Statement and Bank Reconciliation Statement
|
Basis |
Bank Statement/Pass Book |
Bank Reconciliation Statement |
|---|---|---|
| Preparation | It is prepared by banks. | It is prepared by businessmen. |
| Objective | Its main objective is to inform customers about the transactions during a period. | Its main objective is to find out the cause or causes of difference in the balance sheet of cash book and pass book and rectify them. |
| Time | It is prepared for a particular period. | It is prepared on a particular date. |
| Necessity | It is necessary to prepare Bank Statement/ Pass book. | It is not necessary for businessmen/customers to prepare Bank Reconciliation Statement. |
| Content | The content includes: (i) Date of Transaction (ii) Particulars of Transaction (iii) Drawings (iv) Deposits (v) Balance |
The content includes: (i) Cause or Causes of differences (ii) Amount of difference |
| Starting Amount | It begins with the balance of the customer’s balance account. | It begins with the Cash Book or Pass Book balance. |
| Final Result | The balance in the account of the customer in the books of the bank after a particular period is shown as the final result. | The balance of Cash Book or Pass Book on a particular date is shown as the final result. |
Difference between Bank Statement and Bank Reconciliation Statement
A Bank Statement and a Bank Reconciliation Statement are often considered as same. But there are differences between them. A Bank Pass Book is the true copy of the account of the customer in the books of the bank, whereas a Bank Reconciliation Statement is a statement prepared mainly to reconcile the differences between the ‘Bank Balance’ shown by the Cash Book and Bank Pass Book.
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