Bank Reconciliation statement features.
1. It is a statement.
2. It is not a part of the process of Accounts.
3. It is prepared to reconcile the causes of difference between the Bank balance as per Cash Book and the Bank balance as per Pass Book.
4. It can be prepared at any time during the financial year, as and when it is required.
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Reasons for Differences between Cash Book and Bank Pass Book
The differences are basically of two types:
(A) Items appear in Cash Book but not appearing in Bank Pass Book and
(B) Items appear in Bank Pass Book but not appearing in the Cash Book.