Bank Reconcillation Statements

Please do let me know What is bank reconcillation statements with proper examples.

Thank you.

NOTE : [I][This question was asked by jaya bhatnagar[/I][I]][/I]

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.:mad: They also generate a special statement (BRS) for you that highlight this incorrect posting and also the corrections made by them.

Nice, Thank you for your answer sutnarcha

[QUOTE=sutnarcha;3996]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.:mad: They also generate a special statement (BRS) for you that highlight this incorrect posting and also the corrections made by them.[/QUOTE]
good answer.. Thanks,

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.