Process of Bank Reconciliation involves which of the following?
Process of Bank Reconciliation involves which of the following?
i. Identify the entries which are in the bank statement and do require changes in the cash
book.
ii. List out entries in the cash book not reflected in the bank statement to arrive at the
adjusted Bank Balance.
iii. Find out clerical mistakes, if any committed in the cash book.
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Correct answer: (D) All (i), (ii) and (iii)
Explanation
In bank reconciliation you find bank-statement items that need entries in the cash book, list cash-book entries not yet in the bank statement, and correct clerical errors. All three steps are part of the process.