Revision: Bank Reconciliation Statement Accounts HSC Commerce (English Medium) 11th Standard Maharashtra State Board

Accounting documents used in banking are papers or electronic records—like deposit slips, cheques, receipts, or bank statements—that show and prove payments, deposits, withdrawals, or transfers made in a bank.

Accounting documents used in banking are papers or electronic records—like deposit slips, cheques, receipts, or bank statements—that show and prove payments, deposits, withdrawals, or transfers made in a bank.

A pay-in-slip (also called deposit slip) is a form provided by banks that the account holder fills when depositing cash or a cheque into a bank account. 

A withdrawal slip is a simple paper form used at a bank branch to take money out of your own bank account.

A bank passbook is a small book or a digital app that helps keep track of all the money coming in and going out of a bank account—like deposits, withdrawals, and current balance.

A bank statement is a document from the bank that shows all the money coming in and going out of your account over a certain period, usually a month. 

Bank advice is a formal message or letter sent by a bank to its customer to inform them about specific transactions or changes in their account, such as cheque dishonour, bank charges, interest earned, or any payment made on the customer's behalf.

NEFT (National Electronic Funds Transfer) is a method for transferring money electronically between banks in India, but the money is sent in batches and may take a few hours to reach the receiver.

Virtual banking is the process of availing banking services through information technology—like websites and apps—without physically visiting the bank premises.

IMPS (Immediate Payment Service) is a way to send money instantly between bank accounts in India, using mobile or online banking, at any time of the day or night.

A Bank Reconciliation Statement is an accounting statement prepared to compare the balance shown in a company’s cash book with the balance shown in the bank statement, listing and explaining any differences, so records are accurate and complete.

Time difference means that some transactions show up in the cash book before they appear in the passbook, or vice versa, because the bank and the account holder record them at different times.

A positive (credit) balance in your passbook means the bank owes you money (you have deposits left to use)—this is a favourable balance.

When your cash book shows a positive (debit) balance, it means you have money in your bank account—this is a favourable balance.

When your cash book shows a negative (credit/overdraft) balance, it means you have withdrawn more than you have (you owe the bank)—this is called an overdraft or unfavourable balance.

A negative (debit/overdraft) balance in your passbook means you owe money to the bank because you spent more than you had—also called an overdraft or unfavourable balance.

Reconciliation of debtors and creditors means comparing your records of what customers owe you (debtors) and what you owe suppliers (creditors) with their records to make sure both sides agree and any differences are found and fixed.