A bank reconciliation statement reconciles the bank balance in an organization's books with the bank statement. Differences may arise from cheques drawn by the organization but not yet presented to the bank, bank charges deducted from the account not yet notified to the organization, and payments made to the bank but not yet recorded by the organization. Bank reconciliations are usually performed weekly or monthly and serve as a form of internal control.
A bank statement is a document provided periodically by a bank to account holders detailing all the credit and debit transactions made to their account over a specified period. It serves as an important tool for tracking account activity and managing finances.
Cash receipts that have arrived at a company's bank too late in the current month to be credited to the depositor's bank statement. These deposits require an adjustment on the bank reconciliation statement.
POST in accounting refers to transferring accounting entries from a journal of original entry into a ledger book in chronological order. Banks traditionally posted checking account deposits and withdrawals in a ledger and summarized these transactions on a monthly bank statement. Nowadays, such operations are computerized.
