Can a bank balance be different
Eswar Reddy S (CFO- at NHTF) (58263 Points)
06 June 2022Why ?
Eswar Reddy S (CFO- at NHTF) (58263 Points)
06 June 2022
prasad Nilugal
( GST Practitioner & Accounts )
(14606 Points)
Replied 06 June 2022
Yes , Balance as per books and balance as per Bank pass book is different on a perticular day due to following reasons , that's why we have to do Bank reconciliation .
1) Cheque received by your company but not deposited in to Bank , so you made entry in the companies books but no entry in Bank pass book. ( difference)
2) Cheque issued by you to party , however party has not deposited cheque in to bank ,
balance in your books will reduced , Bank balance remain same .( difference)
3) Bank charges deducted by bank , come to know only after updating pass book , that entries you have to do.
4) Similarly Interest received from bank , come to know only after updating pass book , that entries you have to do .( difference)
5) payment directly made by party in your Bank account .
6) Due to wrong entry made in your books , clerical error , ( difference in books and pass book)
7 ) Cheque dishonored by the bank due to errors .
8) Standing Instruction given by the company to bank for payment of Taxes , Rent , Insurance and other expenses so entry in the bank book , no entry in your Books ( difference)
9) Other reasons ..................
But now days not many people issuing cheques , they make instant payment like , NIFT/ RTGS , G.pay other online payments etc difference is less between Bank balance as per books and pass book comparing in early days /years. on a particular day , so we have to do bank reconciliation
Eswar Reddy S
(CFO- at NHTF)
(58263 Points)
Replied 06 June 2022
prasad Nilugal
( GST Practitioner & Accounts )
(14606 Points)
Replied 06 June 2022
Eswar Reddy S
(CFO- at NHTF)
(58263 Points)
Replied 06 June 2022
prasad Nilugal
( GST Practitioner & Accounts )
(14606 Points)
Replied 06 June 2022
CA Rashmi Gandhi
(Chartered Accountant)
(86308 Points)
Replied 06 June 2022
Eswar Reddy S
(CFO- at NHTF)
(58263 Points)
Replied 06 June 2022
CA Puja Sharma
(Chartered Accountant)
(4984 Points)
Replied 06 June 2022
The difference can be reconciled through BRS. It is generally not possible to have any difference in bank balance after BRS preparation.
Eswar Reddy S
(CFO- at NHTF)
(58263 Points)
Replied 07 June 2022
Eswar Reddy S
(CFO- at NHTF)
(58263 Points)
Replied 14 June 2022
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