What Need and importance of bank reconciliation statement?

* Bank reconciliation statement ensures the accuracy of the balances shown by the pass book and cash book.

* Bank reconciliation statement provides a check on the accuracy of entries made in both the books.

* Bank reconciliation statement helps to detect and rectify any error committed in both the books.

* Bank reconciliation statement helps to update the cash book by discovering some entries not yet recorded.

* Bank reconciliation statement indicates any undue delay in the collection and clearance of some cheques.