A bank reconciliation statement brings the cash balance recorded in a company's books into agreement with the bank statement's reported cash balance. It is usually prepared monthly after receiving the bank statement, which provides a report of deposits, withdrawals, charges, and the daily cash balance over the month. Different types of bank accounts include demand deposits for checking accounts with withdrawable funds, savings deposits that earn interest, and time deposits that require an agreed period before withdrawal.

1. BANK RECONCILIATION

2. A Bank Reconciliation is
a statement which
brings into agreement
the cash balance per
book and cash balance
per bank.

3. Bank Reconciliation is usually
prepared monthly because the
bank provides the depositor with
the bank statement at the end
of every month.

4. Bank Statement is a monthly
report of the bank to the
depositor showing the cash
balance per bank at the
beginning, the deposits
acknowledged, the checks paid,
other charges and credits and
daily cash balance per bank
during the month.

5. Demand deposit – This is the
current account or checking account or
commercial deposit where deposits are
covered by deposit slips and where
funds are withdrawable on demand by
drawing checks against the bank.
 A demand deposit is noninterest
bearing.

6. Saving deposit – The depositor is
given a passbook upon the initial
deposit.
A saving deposit is interest
bearing.

7. Time deposit – is
evidenced, however, by a formal
agreement embodied in an
instrument.
 Time deposit may be preterminated
or withdrawn on demand or after a
certain period of time agreed upon.

8.  Credit Memos – refers to items not
representing deposits credited by the
bank to the account of the depositor
but not yet recorded by the depositor
as cash receipts.