Bank Reconciliation Statement is a statement prepared mainly to reconcile the difference between the Bank Balance shown by the Cash Book and the Bank Pass Book. A Bank Reconciliation Statement is a list in which the various items that cause a difference between the balances are indicated.

Usually the Bank Balance of a businessman as per his Cash Book should generally be the same as shown by his Bank Pass Book on any particular day. For every entry in the cash book there is a corresponding entry in the pass book or vice versa, the bank balance will be same in both the books. But it must be noted that the cash book is maintained by the businessman and the pass book is maintained by the bank and so there is always chance for the difference between these two. The disagreement may be due to: