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Is Bank Reconciliation Statement is compulsory prepared?
Even when both cash & Bank Book are tally?
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Answer Posted / vpnarasimhan@gmail.com
The logic behind this requirement is we have to be sure &
secure whether all the deposits we have made are accounted
by bank properly.Bcoz if some mistake happened at Banker's
end say it has been credited to some xyz account by error
what will happen. Imagine U might have issued cheques based
on the deposits u have made. In order to over come these
difficulties we necessarily have to prepare BRS. Bank
charges & Interest (payable/received) can be derived only if
you can able to do BRS.
This is not to scrutinize the Banker but to check the
accuracy of books of accounts at our end.
The most important amazing fact is that most of the
fraudulent activities can be found out only with the help of
BRS
| Is This Answer Correct ? | 19 Yes | 1 No |
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