How we account reconcillation is neccessary for accounting? Anyone Explain in detail about reconcillation?
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Vikram,
Reconciliation is ofcourse very important. It simply means to close your entries which are satisfied by contra action.
When you have to get paid by your customer, you are waiting ! When he pays you, you close the Hisaab! This closing of expected v/s. received is reconciliation.
http://en.wikipedia.org/wiki/Reconciliation_%28accounting%29 should help you more!
Thanks.
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