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Preparing bank reconciliation as well as debtors and creditors accounts. What it means?

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Question added by Noufal Chennindavida , Marketing Executive , ARC Business Information Technology Est.
Date Posted: 2016/10/18
UMER MUNEESH
by UMER MUNEESH , Audit Assistant , NCMK ASSOCIATES

Debtors : A debtor is a person or enterprise that owes money to another party. Creditors : A creditor is a person, bank, or other enterprise that has lent money or extended credit to another party.

Iltaf Ahmad
by Iltaf Ahmad , Accountant , HAQ ELECTRONICS PESHAWAR PAKSITAN

It is a statement which contain a complete and satisfactory explanation of the difference in balance as per cash book and Bank statement.it is important for cash inflow and out flow.both of them tally as per cash book with bank statement.it reduce errors and irregularities if any.

Difference in the two balance arise from Three causes.

(1)Timing

(2)Transaction

(3)Errors 

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