The Bank Reconciliation Statement is prepared?
ATo bring out the reasons for the difference between the Balance as per Cash Book and the Balance as per Bank Statement
BTo arrive at the Bank Balance
CTo arrive at the Cash Balance
DTo rectify the mistakes in the Cash Book
Correct answer
A. To bring out the reasons for the difference between the Balance as per Cash Book and the Balance as per Bank Statement
Explanation
The basic objective of the preparation of the Bank Reconciliation Statement is to locate the reasons for differences between the balance as per Cash book and the balance as per Bank Statement. The ancillary benefits during this process of preparation can be said to be rectification of mistakes in cash book, rectification of mistake in bank statement etc. Hence option D. is the right choice.