Chapter 4, Problem 13DQ

To determine

Introduction:

Bank reconciliation is the process through which the difference between the two, the accounting records of the bank and the accounting records of the company can be easily ascertained. The records of both the accounts often disagree because the transactions are not recorded at the same time. Therefore, to make sure that the records of the company are matched with the accounting records of the bank, any difference must be “reconciled.”

The advantages of performing reconciliations of the cash account to the balances on the bank statements.