Journal entries based on the bank reconciliation are required in the depositor's accounts for?

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22-08-2022
Business

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Journal entries based on the bank reconciliation are required in the depositor's accounts for?

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AnkitM AnkitM · Answer 1 · 2022-08-26T13:21:51+02:00

Journal entries based on the bank reconciliation are required in the depositor's accounts for book errors.

For book errors, journal entries based on the bank reconciliation must be made in the depositor's accounts. An entity's bank account is matched up with its financial records using a bank reconciliation statement, which is an overview of banking and commercial activity.

The statement lists all of the deposits, withdrawals, and other transactions that affected a bank account over a certain time period. An effective internal financial control tool for preventing fraud is a bank reconciliation statement. A bank reconciliation statement summarizes banking and business activity by comparing a company's bank account to its financial records.

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