Reconciliation is an accounting procedure that compares two sets of records to check that the figures are correct and in agreement. Reconciliation also confirms that accounts in ageneral ledgerare consistent and complete. Reconciliation can be used for personal as well as business purposes.

Account reconciliationis particularly useful for explaining any differences between two financial records or account balances. Some differences may be acceptable because of the timing of payments and deposits. Unexplained or mysterious discrepancies, however, may warn offraudorcooking the books. Businesses and individuals may reconcile their records daily, monthly, quarterly, or annually.

1. What is the purpose of bank reconciliation in accounting? 2. What are the main steps involved in performing a bank reconciliation? 3. Why is it important to reconcile bank statements with the company's records? 4. What are the common items included in a bank reconciliation statement? 5. How do outstanding checks and deposits-in-transit affect the bank reconciliation process? 6. What are some common causes of discrepancies between the bank statement and the company's records? 7. How do you handle errors or mistakes found during the bank reconciliation process? 8. Can you explain the concept of a bank reconciliation statement in a simplified manner? 9. What are the advantages of regularly reconciling bank statements? 10. How does the bank reconciliation process help in detecting fraudulent activities?