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In my point of veiw and sample answer is2 MUST be equal , Bank statement = Company Bank Book Balance.
Bank reconciliation is an excercise of finding missing or mis match entries between General Ledger (GL) and Bank Statement (BS). There are normally5 types of differences i.e.
1- Payment in BS not in GL
2- Receipt in BS not in GL
3- Payment in GL not in BS
4- Payment in GL not in BS
5- Mis match of amount for any particular entry between GL/BS
The process of Bank Reconciliation is very simple first find out the missing OR mis match entries then start the recon from the balance of BS Add or Less (according to their nature) the missing or mis match entries to reach the GL balance.
