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Bank closing balance

shwetha bhat (student) (34 Points)

13 October 2022

will it be there any difference in opening balance between Bank statement and financial statements as on 31st March

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14 Replies

Yasaswi Gomes new (Finance ) (4514 Points)
Replied 13 October 2022

1st April is th opening balances

Transactions occurs and every account is debited or credited

31 March is the closing final balance

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Hiren Patel (Student) (33 Points)
Replied 13 October 2022

Yes, Due to reconciliation there might be different balance as per Bank Statement and Financial Statement.

shwetha bhat (student) (34 Points)
Replied 13 October 2022

Which one should i consider for opening balance purpose?

1 Like

Yasaswi Gomes new (Finance ) (4514 Points)
Replied 13 October 2022

If it is bank reconciliation, reconsiliation can be done based on the cash book or pass book.

Eswar Reddy S (CFO- at NHTF) (58270 Points)
Replied 14 October 2022

If cheques are then only there can be a difference

9 Like

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Abhilash wadhonkar (30 Points)
Replied 14 October 2022

Should be taken on year ended asper your software.

Eswar Reddy S (CFO- at NHTF) (58270 Points)
Replied 15 October 2022

Bank balance as per ledger or balance sheet should be considered. The difference due to " Cheques issued but not cleared or Cheques deposited but not cleared " will be part of BRS

8 Like

prasad Nilugal ( GST Practitioner & Accounts ) (14801 Points)
Replied 15 October 2022

Same thing I had told her in first query and reply , you have to take balance as per books ( Financial statement ) , to carry forward next year not as per bank statement .

1 Like

Eswar Reddy S (CFO- at NHTF) (58270 Points)
Replied 15 October 2022

👍🏻👍🏻

5 Like

Yasaswi Gomes new (Finance ) (4514 Points)
Replied 16 October 2022

Accordingly there is always a small difference due to discrepencies in book keeping. The audit thrshold of 3% saves everyone in the company with errors. BRS is the easiest and tracking invoices the the next big challange.