Answer Posted / neerajkumar.che
Hi to all,
BRS (Bank Reconcillation Statement)
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.
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