I am preparing for an interview can you tell me regarding the above

This is a very basic concept that you should be doing with your own bank account, assuming you have one.
You compare your checkbook to the bank statement.
You check off the line items in the checkbook that have been added/subtracted on the statement.
You take the ending balance on the statement and adjust for checkbook entries that haven't shown up yet,
By adding deposits and subtracting payments. When the bank and your checkbook match after the adjustments, they are reconciled.