What is Bank statement &Bank reconciliation?

 

Bank statement 
1.it  is a summary of financial transactions which have occurred over a given period on a bank account held by a person or business with a financial institution.

2.A bank statement is a record, usually sent to the account holder once per month, summarizing all transactions in an account during the time from the previous statement to the current statement.
 

3.The opening balance from the prior month combined with the net of all transactions during the period should result in the closing balance for the current statement.

Bank reconciliation?

1.A bank reconciliation is a process performed by a company to ensure that the company's records (check register, general ledger account, balance sheet,etc.) are correct and that the bank's records are also correct.

2.A bank reconciliation is the process of matching the balances in an entity's accounting records for a cash account to the corresponding information on a bank statement.

3.The bank reconciliation for a company's checking accounting begins with the company noting the balance per the bank statement and then making some notations about that balance.

For example 

Balance per bank statement at October 31 $6,442.56; outstanding checks as of October 31 $3,400.00; deposits in transit at October 31 $1,000.00.

bank statement balance  $6,442.56;

(+) deposits in transit      $1,000.00.

(-)outstanding checks     ($3400.00)

bank statement balance  $4,042.56