account reconciliation 1
Definition
A procedure for confirming that the balance in a chequebook matches the corresponding bank statement. This is normally done by preparing a bank reconciliation statement.
Example
Example 1:
The accountant at a Lagos trading company compares every transaction in their chequebook against their GTBank statement at the end of each month, identifying any discrepancies or missing entries through account reconciliation.
Example 2:
A small business owner in Bristol sits down every month to match her Barclays bank statement against her chequebook records, ensuring every payment and deposit tallies correctly through a thorough account reconciliation.