Bank reconciliation

you should pass the entry in your books of accounts and at the same time prepare the reconciliation statement to match the bank balanace as per books and bank statement.

Dear Selim,

As far as receipts or payments as on 30-6-xxxxx it should be accounted in the Financial Book.  When it comes to Bank Reconcilisation you need to prepare a BRS and attach to Bank Statement.  Normally this is to be done on Monthly basis but in some companies cash crunch or critical they will monitor on daily basis.

BRS will be like this :

Bank Balance asper the Statement : -------------------------

Add: Cheque Deposited but not realised =  500

Less: Cheque Issued but not cleared    =  1000

The Balance will match to ur Financial Statement---------------

B.N.Dharmendra

Vietnam

If you reconciling you accounts taking balance as per your books then BRS will be like this

balance as per books:                                   XXXXX

LESS: cheque depoisted bt you credited: 500

ADD: chequed issued bt nt yet cleared: 1000

balance as per paas book:                         XXXX

and vice versa if you r reconcilling banks taking balance as per paas book.

Thanksss ashish gupta, Dharmendra, asoltech. 

Could you please check and suggest: 

I have debtors balance 30K. 

I Creditors balace 50K. 

I go through my bank and ledger at 30-06-XXXX. Found, 5K cheque is paid but not in bank yet. I got 3K cheque but not in bank yet. (after payment and receiving these debtors and creditors balance as avove) 

So, In balance sheet should it be: 

-------------------------------------------------------------

Debtors (30K-3K)=27K

Creditors (50K-5K)-45K

---------------------------------------------------------------

OR

---------------------------------------------------------------

Debtors 30K

Creditors 50K

Cash in transit -(2K) 

-----------------------------------------------------------------

Dear Selim,

You need not reduce or increase the amount in Debtors or Creditors.  U have to make a seperate BRS statement and attach it to the Bank Statement only to confirm & tally the balance between the Bank Balance in ur TB and the Bank Statement received from the Bank.  During the reconcilliation u will find the difference between the TB Bank Balance and Bank statement.  Its Normally because of bank charges or interest accounted by the Bank is not accounted by you.  So you have make those entries also in to the TB and prepare the BRS to tally the TB Bank balance with Bank Statement Balance.

Thanks, Dharmendra, 

So, TALLY bank balacne should be appear in final balacne sheet. 

AND

BRS should be attached with bank statement . 

Could you please tell me any IAS support this? 

Thanks again