Please do let me know What is bank reconcillation statements with proper examples.
Thank you.
NOTE : [This question was asked by jaya bhatnagar]
Please do let me know What is bank reconcillation statements with proper examples.
Thank you.
NOTE : [This question was asked by jaya bhatnagar]
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.
Lack of WILL POWER has caused more failure than
lack of INTELLIGENCE or ABILITY.
-sutnarcha-
Nice, Thank you for your answer sutnarcha
how can i calculate bank reconcillation
Bank Reconciliation Statement is done to reconcile your pass book balance with your Cash book as on a particular date. Cash book is maintained by you and record the activities(Deposits, Withdrawal and check issues).
For Ex: As a business person you issued a check for 10,000 and record in your books, but in pass it will be deducted when check is presented to the bank.
Hope it helps you.