Question 13 of 50beginner🧠 RememberMCQ1 mark

A bank reconciliation statement is prepared with the balance:

Exercise: Test Your Understanding - II | Q: 2 | (Page 14)
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Explanation

According to the provided context, to prepare a bank reconciliation statement, we need both the bank balance as per the cash book and the bank statement (passbook) as on a particular day. The statement reconciles the two balances, and the proforma includes both 'Balance as per cash book' and 'Balance as per passbook'. Therefore, the bank reconciliation statement is prepared with the balances of both the passbook and the cash book.