When you receive your bank statement, you should first identify any items on the statement that are not listed in your account register

Five items which are in Bank statement but not listed in books can be :

1. Check given for payment but not deposited in Bank.

2. Bank charges or any other service charges deducted by bank.

3. Interest credited by bank.

4. Direct deposits received in Bank

5. Dishonouring of a check.

Treatment to be done while preparing bank reconciliation ( taking balance as per account registers and making adjustments to reach balance as per statement):

1. Amount will be added in balance as per account registers.

2. Bank charges amount will be reduced.

3. Interest amount will be added.

4. Deposit amount will be added.

5. Amount will be added.

If reconciliation does not happen :

1. Errors will remain undetected

2. There are chances of any misstatements and fraud.

3. Risk of unauthorized payments.

4. Chances of ignorance of any amount received or multiple payments can be made, etc.

5. Not proper recording in financials.

There are many other difficulties.