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BRS

Prosenjit Ghosh (Accountant) (55 Points)

23 June 2009

Please tell me the actual definition of Bank Reconciliation Statement

Thank you very much

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8 Replies

Ramakrishnan (Student) (140 Points)
Replied 23 June 2009

Please go through attached file. It will help you...

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Ramakrishnan (Student) (140 Points)
Replied 23 June 2009

Oops Attachment missed

Attached File : 2 lesson 14.pdf downloaded: 187 times

ajay agrawal (CA-Final Nov 10) (129 Points)
Replied 23 June 2009

BRS is itself a defination.

see the words,

Bank whch u know wat does it means.

Reconciliation is derived from reconcile which means to tally or to make it balance

Statment means something in a prescribed manner.

Now see, actually wat happens there are some difference between our books and bank pass book because of some bank charges, cheque bounce, direct deposit from clients due to whcich oue bank ledger doent tally with bank pass book, and to balance it and to show the reasons of difference we prepare BRS..

regars,

Ajay

Prosenjit Ghosh (Accountant) (55 Points)
Replied 23 June 2009

Where is attached file ?

Thanks

Prosenjit

Prosenjit Ghosh (Accountant) (55 Points)
Replied 23 June 2009

Ramakrishnan,

Thanks a lot, this is a very nice details in your attached file.

Many many thanks to you

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CA. Dashrath Maheshwari (TaXpert) (15103 Points)
Replied 23 June 2009

Bank Reconciliation statement: This is a statement explaining any difference between bank book balance kept by the business and the bank statement issued by the banker.

Now let us start with basic book keeping.

Illustration 1:

On 1st January --08 Philip started business with Rs. 1,000 at bank.

The first step is to open two accounts i.e Bank A/c and Capital A/Cs. Normally if you buy an accounting software, you will find that most of the accounts have been installed or opened.

So the first entries to make is to Dr Bank A/C by Rs. 1,000 and Cr Capital a/c by Rs. 1,000