BRS- is nothing but bank reconciliation statement, it is
used to check the bank balance as per pass book and the
balance as per the cash book....
Eg: If a person deposits sum amount of money in the bank
without an entry in the pass book but entered only in the
cash book. Dose the difference arises and to over come
this problem BRS is used
BRS- bank reconciliation statement
1.it is prepared to know the difference between passbook
and cash book.
2.the reasons for the difference
3.whether to examine the balance is same when difference is
matched
Bank Reconsilation Statement is an aid throght which the
cash book entries and bank entries are matched and verified
before making trial balance.
As we know that balance in cash book is shown in debit side
and in Bank pass book it is credit entry but sometimes both
entries do'nt match.There are some reson as follows::
((1))When cheque issued by the company is not presented by
the creditors .
So this will credit the cash book with cheque amount but on
same day there will be no debit entry in pass book of bank.
((2))When cheque is presented in the bank,but bank does not
get it clear or collected the amount.
So it will debit the cash book account and there will be no
credit entry in bank pass book.
((3))As you all know that bank credit the account with the
interest on preodic basis for the balance.So this credit
entries will be known to the business after getting bank
satatement for that period.So we will make debit entry in
our(company) account for that amount.
((4))In similarn fashion bank debit account for the charges
for overdraftn and collection that bank has made on company
behalf.Again , this entry will be known after issuance of
bank statment.
((5))Some entries in passbook and cash book is ommitted.
((6))Some wrong entries is passed in cash book or bank pass
book.
BRS means Bank reconcilation statement which prepare for
reco the transaction recorded in bank book with entries
made by the bank in pass book.
What are bank charges/interest other entries by bank only
come across after got bank statement. So we can make
entries in bank books as per requirement and tally the bank
book balance with bank pass book.
BRS- bank reconciliation statement
1.it is prepared to know the difference between passbook
and cash book.
2.the reasons for the difference
3.whether to examine the balance is same when difference is
matched
3. Financial Management
What will your outlook towards maintenance of liquid assets
to ensure that the firm has adequate cash in hands to meet
its obligation at all times?
hi im vinuta, i want to know the meaning of liquidity? i
know that it means converting the assets into cash, but i
want to know something more than that, so kindly help me?
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