Bank statement
In one sentenceA report the bank issues with all transactions on the business's account during a period (deposits, withdrawals and fees) with the balance after each transaction.
Simply put
The statement is the bank's view of your account, and the bank ledger in your accounts is your own view. They rarely match on a given day, because one side records some transactions before the other.
That is why you reconcile them every month. On the bank statement a deposit appears in the credit column because it is a debt the bank owes the business, while it appears as a debit in your books.
Worked example
A restaurant's bank statement for March started with a balance of 80,000 SAR, with deposits of 150,000 SAR and withdrawals and payments of 110,000 SAR.
Opening balance for the month80,000
+ Deposits (credit on the statement)150,000
− Withdrawals and payments (debit on the statement)(110,000)
Closing balance = 80,000 + 150,000 − 110,000120,000 SAR
Don't confuse it with
Bank reconciliationThe statement is a document from the bank, and the reconciliation is the process that compares it with your books and explains the differences.