A bank reconciliation is a statement that provides a balance of the cash account between the balance shown in the bank account to the balance the business actually has on hand. This statement helps auditors during an audit; it is considered to be a tremendous piece of evidence in auditing the cash account.
Here is an illustration of how to set up an actual Bank Reconciliation:
Example:
Adequate Disclosure has the following information pertaining to its accounting records for the month of January. (Click on the picture to enlarge)
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