Explain what is a bank statement?

A bank statement is a monthly statement send by your bank to you or your business.In a bank statement, it shows the following:

  • The balance owed at the beginning of the month
  • New debts incurred during the month
  • Payments made during the month
  • The balance owed at the end of the month

This is similar to the debtor or creditor statement. To the bank, it is merely informing the customers –individual or business whether the bank is owing him /business that money or vice versa. We can say that the bank’s records reflected in the bank statement are a “mirror image” of the customer’s own records, with debits and credit reversed re: bank shows a credit balance ( re owing to customer say $2,000) and the customer’s own record should show a debit balance of $2,000 )

 

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