Bank Reconciliation Statement BRS – Class 11



bank reconciliation statement in this module you will learn about a bank reconciliation statement nowadays almost all business organizations especially large organizations conduct their business transaction deals through a bank rather than in cash in other words business organizations most of the time avoid dealing in cash business organizations prepare a cash book and the bank they are dealing with prepares a passbook both the cash book and passbook record the same transactions and therefore their balances should match the reconciliation process helps to bring out the errors committed in either the cash book all the passbook it provides reasons for the differences in both the books and later it helps to reconcile the differences the errors commonly found in the cash talk and passbook are checks issued but not yet presented for payment checks deposited in the bank but not yet collected amount directly deposited by the customer in the bank bank charges and bank interest a bank reconciliation statement can help to avoid irregularities in both the passbook and cash book as all entries are timely transferred in the cash book in this module you have learnt the following business organizations prepare a cash book and the bank they are dealing with prepares a passport the balances of both the books should match if there is a discrepancy in the balances of the cash book and passbook a business organization at the end of every month prepares a statement called a bank reconciliation statement the reconciliation process helps to bring out the errors committed in either the cash book or the passbook bank reconciliation statement helps to eliminate bank statement errors

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