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hi.... this is raja from hyd i want know how to prepare brs
first you have to calculate the balance as per book
Then add the cheques issued but not cleared from bank and reduce the cheque deposited not cleared.
Then pass any entry for bank charges if any.
the final figure should match with bank statement.
Regards,

Dear,
1. Pls keep the bank statement closing balance is our base balance.
2. Less what are cheques (receipts from customer ) were deposited but not credited in our account.
3. Add what are cheque were issued to vendor / expenses but not debited in our account.
4. if any amounts credited but not accounted in your books add these
4. if any amounts debited but not accounted in your books less these
5. if above steps carefully done, the closing balance surely equal to your book closing balance
Note : If any bank charges directly debited or any interst credited by banker directly accounted in your books and not shows in your BRS
Regards,
Yacob.A
Success is the ability to go from failure to failure without losing your enthusiasm.-Sir Winston Churchill

Bank Reconciliation Statement is as necessary as a bank statement for a cash account. It records necessary changes mandatory to declare the bank statement and cash book records error-free and hence, required. Moreover, some random errors like wrong entries to the data, etc. might not be replaced.
Reconciliation records all the needful changes and helps in the smooth functioning of a firm. BRS is a statement which is prepared to reconcile the difference between cash balance and bank statement balance.
It isnít mandatory to prepare a BRS until and unless you want to be double sure. Also, there is no fixed date to reconcile both statements.
Two different firms prepare a cash record and bank statement. A firm records transactions in the cash book. A bank issues a bank statement every month.
However, a third party prepares the Bank Reconciliation statement. It compiles the errors they both make.
Steps in Preparation of Bank Reconciliation Statement
Check for Un cleared Dues
Step 1: First of all, compare the opening balances of both the bank column of the cash book as well as the bank statement. The two can be different in terms of un cleared dues like un-presented or un-credited cheques from the previous month.
Compare Debit and Credit Sides
Step 2: Start by comparing the credit side of the bank statement to the debit side of the bank statement. Also, compare the credit side of the cash book to the debit side of the cash book. The two must be equal in both documents. Tick the columns if you canít find any error.
Check for Missed Entries
Step 3: Analyze entries in the bank column of the cash book as well as in checkbook. Look for records that have been missed to be posted in the bank column of the cash book. Make a separate list of all such items and list them in cash book.
Correct them
Step 4: Correct the errors present in the cash book, if any.
Revise the Entries
Step 5: Calculate the balance after revising the updated cash bookís bank column.
Make BRS Accordingly
Step 6: Prepare Bank Reconciliation Statement accordingly. Make sure to add the updated version of records.
Add Un-presented Cheques and Deduct Un-credited Cheques
Step 7: Banks are not aware of Un-presented cheques because the beneficiary doesnít get the cheque. It is the case when the business firm forgets to deliver the signed cheque to the issued name.
This situation leads to the addition of the cheque amount in the bank statement.
On the other hand, cheques which beneficiary has not yet collected are called un-credited cheques. These must be deducted.
Make Final Changes
Step 8: Make all the final adjustments and check for bank errors in the bank statement and the firmís errors in the cash book. During heavy transaction days, firms or banks may make mistakes in noting entries.
The process removes those errors. Although it consists of fine work, reconciliation becomes a helping hand at hard times (large transaction days).
Left-Hand Side Equal to the Right-Hand Side
Step 9: The results from both the documents i.e. bank statement and cash book must match with each other.

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