Learn why your bank statement and books may show different balances.
Why two balances can differ
Your books record entries when you enter them. The bank statement records transactions when the bank processes them. Timing differences, charges and missed entries can therefore produce different balances.
Match the transactions first
Compare deposits and payments using the date, amount and reference. Mark each matched item. Keep unmatched items in a separate reconciliation list.
Understand the difference before changing an entry
A bank charge may need an entry in the books, while an unpresented cheque may simply be a timing difference. Check the document before making a correction.
A simple example
Suppose the bank statement shows a charge of ₹100 that is absent from the books. Check the charge and record it in the appropriate account. Do not post an unexplained adjustment merely to force the balances to agree.