Describe a bank reconciliation and discuss its purpose.

A bank reconciliation is a report explaining any differences between the checking account balance according to a depositor's records and the balance reported on the bank statement.It can be used to prove the accuracy of a company's cash records.The balance of a checking account reported on the bank statement rarely equals the balance in the depositor's accounting records due to information that one part has that the other does not,or due to potential errors.The reconciliation procedure examines the differences based on the information available to the company and adjusts for the differences.It also serves as a format for the discovery and correction of errors.