The Bank Statements of your business is the foundation based on which books of accounts are prepared. However, a Bank Statement with no proper remarks creates more problems than solving one. A typical bank statement issued by an Indian Banker contains only a few columns. The information which you may gather from a bank statement is only very basic information such as date, transaction reference numbers, amount, and finally, whether it is deposit or withdrawal.
It does not contain necessary information such as the Full name of the Party and the purpose of the transaction. Please refer to a Bank Statement from HDFC Bank for the use of reference. In the below image, you can see that the Bank Statement contains only a few pieces of information only.
For the purpose of accounting each & every transaction must be identified by party name & the reason for such transaction. You would agree that under a double-entry system of accounting when the money is received in the bank account then the bank account is debited and correspondingly we have to credit the party from where money has come into the bank statement. Similar credit/debit treatment is required for payments/withdrawals. In view of the same please add four new columns to your bank statement.