many a times the balance as per the cash book n that ar per
the bank book doesnt match becoz of the reasons like time
taken to clear a cheque etc... in order to concile the
balances between the 2 statements, a statement called brs
is prepared... it ensures that no wrong entry is passed in
either of the two books...
Bank Reconcilation statement means comparing with company
bank book with bank statements, whether any other bank
charges, deposited cheques are realised, payment to payee
cheques are debited correctly or any other entries passed by
bankers like interest, penalty charges etc,.cross check with
bank statements to correct our company bank book and to
confirm the balance.
It is a reconciliation statement which explains the
differences betweeen closing balances of Bank Statement
(Pass Book) and Cash Book on a particular date or end of
the month.
BRS is a control tool where accountant find out not only
the differences but also have the following uses:
1. To avoid duplication of entries.
2. To know the un accounted income or expenditure.
Bank Reconciliation Statement can be defined as a statement
which reconciles the balance as per cash book and the
balance as per pass book showing the causes of difference
between the two.
Babk reconciliation is a one accounting statement.whenever
we will take one particular period at that time as per pass
book balances and cash book balances should not tally
because some reason is there.
1.we issued some cheques but not presented for payment.
2.we deposited some cheques in bank but not credited.
3.Bank charges
4.Bank interest and etc.
Bank Reconciliation Statement (BRS) is a statement reflect
the cause of the difference between balance of our accounts
in Bank as well as bank balance in our books.
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