Bank Reconciliation Statement (BRS): When Extracts from Cash Book and Pass Book are given Last Updated : 22 Aug, 2023 Comments Improve Suggest changes Like Article Like Report A statement showing all the items of difference between the bank column of the Cash Book and the bank balance depicted in the Pass Book on a particular date and for a particular period of time is called a Bank Reconciliation Statement. It is a statement prepared on a particular date to reconcile the bank balance of the Cash Book with the balance as per the Pass Book or vice-versa. When a Bank Reconciliation Statement is prepared, it is checked whether the extracts from the cash book and passbook are given for the same period or the extracts from the cash book and passbook are given for different periods. Bank Reconciliation Statement (when Cash Book and Pass Book are given for the same period) If the cashbook and passbook are given for the same month, then the items appearing in the cash book and passbook will be compared to identify the items which appear in the cash book, but not in the passbook and the items which appear in the passbook but not in the cash book. These items have caused differences in the balances of the cash book and passbook and require reconciliation. Items appearing on the debit side of the cash book are compared with the items appearing on the credit side of the passbook and the items which are appearing in both the books are ticked. Similarly, items appearing on the credit side of the cash book are compared with the debit side of the passbook, and the items which are appearing in both books are ticked. Illustration: From the following extract from the cash book and the passbook from the month of March 2023. Prepare the bank reconciliation statement as of 31st March 2023: Solution: Bank Reconciliation Statement (when Cash Book and Pass Book are given for the different periods) If both the books are given for different months e.g. cash book is given for March and the passbook is given for April, in that case, the debit side of cash book (March) will be compared with the credit side of passbook (April) and the items appearing in both the books will be noted. Because these are the items that have caused difference in the balance and hence require reconciliation. The common items will represent the cheques deposited in the month of March and credited in bank in the month of April. Similarly, items appearing on the credit side of the cash book (march) will be compared with the debit side of the passbook (April) and the items will represent the cheques issued in March, but presented for payment in April. Illustration: From the following extract from the cash book and the passbook from the month of March 2023. Prepare the bank reconciliation statement as of 31st March 2023: Solution: Comment More infoAdvertise with us Next Article Depreciation: Features, Causes, Factors and Need G garimataneja Follow Improve Article Tags : Accountancy Commerce - 11th Similar Reads CBSE Class 11 Accountancy Notes Accountancy is a practice through which business transactions are recorded, classified, and reported for the proper and successful running of an organization. GeeksforGeeks Class 11 Accountancy Notes have been designed according to the CBSE Syllabus for Class 11. 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A Bank Pass Book is the true copy of the account of the customer in the books of the bank, whereas a Bank Reconciliation Statement is a statement prepared mainly to reconcile th 5 min read Preparation of BRS without correcting Cash BookBank Reconciliation Statement is prepared to compare the balances of cash book and passbook and correct the mistakes recorded in them. The balance of deposits held at the bank is referred to as the debit balance. The same balance becomes the credit balance in the passbook. In some cases, a bank reco 3 min read Bank Reconciliation Statement (BRS) : Without Correcting Cash BookThe cash balance as shown in the bank statement and the cash balance as shown in the business's cash book are compared in a bank reconciliation statement. It aids in locating and elucidating any discrepancies between the two balances brought on by mistakes, omissions, or variations in time. One of t 3 min read Preparation of Bank Reconciliation Statement with Amended Cash BookA statement showing all the items of difference between the bank column of the Cash Book and the bank balance depicted in the Pass Book on a particular date and for a particular period of time is called Bank Reconciliation Statement. It is a statement prepared on a particular date to reconcile the b 4 min read Bank Reconciliation Statement (BRS): When Extracts from Cash Book and Pass Book are givenA statement showing all the items of difference between the bank column of the Cash Book and the bank balance depicted in the Pass Book on a particular date and for a particular period of time is called a Bank Reconciliation Statement. It is a statement prepared on a particular date to reconcile the 3 min read Chapter 5: Depreciation, Provisions, and ReservesDepreciation: Features, Causes, Factors and NeedDepreciation refers to the decrease in the value of assets of the company over a time period due to use, wear and tear, and obsolescence. In others words, it is the method to allocate the cost of an asset over its useful life. Depreciation is always charged on the cost price of the asset and not on 6 min read Methods of charging DepreciationDepreciation refers to the decrease in the value of assets of the company over the time period due to use, wear and tear, and obsolescence. In others words, It is the method to allocate the cost of an asset over its useful life. Depreciation is always charged on the cost price of the asset and not o 5 min read Straight Line Method of Charging DepreciationBusinesses choose different methods for calculating depreciation according to their need. 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The accounts showing the debit balance are posted on the debit side of the trial balance, and the accounts showing the credit balance are posted on the credit side o 4 min read Detection and Rectification of Errors in Trial BalanceWhat is Trial Balance?A Trial Balance is a statement prepared with the balances of the ledger account, with a motive to verify the accuracy of the accounts. The accounts showing the debit balance are posted on the debit side of the trial balance, and the accounts showing the credit balance are poste 7 min read Suspense Account : Meaning, Journal Entry & FormatWhat is Suspense Account?A Suspense Account is a ledger account used for the temporary recording of business transactions. The necessity for a suspense account stems from the inability to identify the appropriate ledger account for the transaction to be recorded. 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It is noteworthy 9 min read Accounting Treatment of Bills of ExchangeWhat is a Bill of Exchange?A bill of exchange is a written order that one party receives from another requiring them to pay the other a specific amount of money, either immediately or at a later date. It is important that such an order of payment should be unconditional and be accepted by both parti 2 min read Part B Like