What is the purpose of preparing a Bank Reconciliation Statement?

1. A Bank Reconciliation Statement (BRS) compares the bank column of the cash book maintained by the entity with the pass book maintained by the bank. 2. The two balances often differ due to timing, transactions recorded only by one party, or errors. 3. The BRS identifies each cause of the difference so that the true bank balance can be ascertained. 4. It is not a tool for listing customers, computing interest, or preparing the bank's own accounts. _Source: ICAI BoS Foundation Paper 1, Ch 3 "Bank Reconciliation Statement", §4 ¶1_