Bank reconciliation statement

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

17 April 2014 Pls can anybody tell

which bank balance is to be taken in financial statement after I have reconcile the bank in my tally from the bank statement of the concern bank, whether it is balance as per bank or balance as per company in the reconciliation mode of the tally which come after pressing F5.

That think I know that we always need to take BALANCE AS PER CASH BOOK in B/S, iam little bit confused about it.

CA Devanand Jethanandani

CA Devanand Jethanandani (Expert)
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17 April 2014
Balance as per books is to be shown in BS.

Querist : Anonymous

Querist : Anonymous (Querist)

18 April 2014 Sir pls check this following link and assume that books is closing on
DEC,05,2010

and after reconcile this statement, the balance to be shown in the balance sheet
as bank bal. is the amt. which will be written in the place of the ₹ 185004
after reconcile the statement till 05.12.2010 from bank statement.

https://www.google.co.in/search ?q=tally+images+of+bank+reconciliation

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CA Devanand Jethanandani

CA Devanand Jethanandani (Expert)
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19 April 2014
Balance to be shown in books will be Rs.185004 only (which is showing balance as per co. books in reconciliation)

Querist : Anonymous

Querist : Anonymous (Querist)

21 April 2014 sir
u mean in this balance the cheque which I had given to the party as payment is put in the bank by party but not yet cleared is also included means deducted from this balance. And the cheque which I have rec. from the party and put in the bank but not yet passed is also added by me in my bank balance.

Sir I am also having another doubt about BRS only, how to deal with the cheque on last of F.Y. which we have given to the party but party didn't put this cheque in the bank for atleast 1 or 2 mths
And sir same doubt in case I have rec. the cheque but didn't put in the bank for same duration whether I need to consider this rec. cheque in my bank.

PLSSSSSSSSSSSSSSS sir reply me 'ASP' with very easy language.

CA Devanand Jethanandani

CA Devanand Jethanandani (Expert)
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21 April 2014 Hi,

Simply we should take into account book balance of bank account in balance sheet.

If we have given cheque to party we should simply pass entry in our books (deduct from bank balance), we are least concerned whether party has deposited in its account or not.

And while receiving payment, we should pass received entry on depositing the same in bank account.

Do not get messed with bank balance as per bank statement, for that we are preparing bank reconciliation statement.

Bank reconciliation statement is prepared to know how / why bank balance in our books and in the books of bank is not matching.

Regards,
Devanand