Bank Reconciliation Statement (BRS) is a stmt. that highlights any transactions that are posted incorrectly in a bank a/c and are later discovered and corrected.
E.g.:
If you withdraw say $1000.00 from your bank a/c while balance was $6500.00Cr. Then technically your balance in a/c should be reduced by $1000.00 and the new balance should be $5500.00Cr.
But, let us suppose, instead of reducing your balance, the computer has increased your balance by $1000.00 and your new balance shows $7500.00Cr
. This is an incorrect transaction posting.
When the bank authorities discover this error, they correct it. After this, your new and correct balance will be $5500.00.
They also generate a special statement (BRS) for you that highlight this incorrect posting and also the corrections made by them.
Originally Posted by sutnarcha
Bank Reconciliation Statement (BRS) is a stmt. that highlights any transactions that are posted incorrectly in a bank a/c and are later discovered and corrected.
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