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What is the relevance of BRS

Prof Suhasini (1732 Points)

26 October 2022

All payments and receipts are by online modes .

What is the relevance of BRS ?

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19 Replies

Eswar Reddy S (CFO- at NHTF) (58270 Points)
Replied 26 October 2022

General Bank reconciliation is to give statement of differences between bank balance as per bank and and accounts..

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Prof Suhasini (1732 Points)
Replied 26 October 2022

Is the BRS relevant if all transactions are by online modes?

5 Like

Eswar Reddy S (CFO- at NHTF) (58270 Points)
Replied 26 October 2022

Generally Bank Reconciliation Statement is relevant if there are cheque payments and receipts are involved.

If all transactions are by online modes then BRS may not be required if balance as per cash book and passbook are same

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Prof Suhasini (1732 Points)
Replied 26 October 2022

If there is no difference in both balances ?

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Eswar Reddy S (CFO- at NHTF) (58270 Points)
Replied 26 October 2022

Then BRS is irrelevant.

BRS required only if there is any difference between cash book and passbook

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prasad Nilugal ( GST Practitioner & Accounts ) (14801 Points)
Replied 27 October 2022

No , Difference is not possible, due Interest received from Bank , Bank Charges, Commission charged by the Bank , error by the Accountant, standing instructions by the Account holder, Dishonour of cheque, cheque payment,for those reasons, we have to refer Bank Statement for reconciliation , so no difference is not possible.
Bank reconciliation has a relevance and should be done regularly at the end of month.

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Eswar Reddy S (CFO- at NHTF) (58270 Points)
Replied 27 October 2022

If all entries in bank statement are entered in accounts then what difference occurs if there is no cheque involved.

Queriest says all are online transactions

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KRITI PAREEK (Chartered Accountant) (31 Points)
Replied 27 October 2022

In Online Transactions also sometimes entry clears next day . Therefore if its 31st March and the entry clears on 1st April then even in case of online transaction BRS is required

prasad Nilugal ( GST Practitioner & Accounts ) (14801 Points)
Replied 27 October 2022

One has to pass entries from Bank statement after downloading from Bank site , in our bank ledger for Bank Charges, Commission charged, Interest received is reconciliation only , bank also do error some time , accountant made mistakes in amounts. so reconciliation is necessary.

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Eswar Reddy S (CFO- at NHTF) (58270 Points)
Replied 27 October 2022

@ Kriti,

Online transactions will reflect in bank on the same day and it shows valuation date on the next working day

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Yasaswi Gomes new (Finance ) (4514 Points)
Replied 28 October 2022

There is no relevance in brs. With sophisticated erps now a days, if somethig doesnt mathc, you have to put it into a suspence. Then, b.com or mba or a ca manager will sort it out. You dont even have to calculate and you get paid at the top level.

Yasaswi Gomes new (Finance ) (4514 Points)
Replied 28 October 2022

Besides brs is for poor people. Ca doesbt have brs apart from diploma level this is all cheap ro earn money by colleges. Brs is not even accounting but they interview questions. Ceos are trying to earn nake mobey by showing brs is important that higher qualified dont it. My a

Yasaswi Gomes new (Finance ) (4514 Points)
Replied 28 October 2022

As per the cash book or bank book it says and who the frig cares. There no perfect principle behind brs. So vagabonds in accounting need not come back asking silly questions. When an accounts curriculum doesnt have it neither does a standard, its a cheap transaction and cost constraint.