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.
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.
4.Bank interest and etc.