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BRS bank reconciliation statement | How To Detect And Record Changes

bank Statement-bank account Statement-image

What is a Bank Reconciliation Statement

The BRS that detects and records the reason for the balance difference between the cash book and the pass book

Why BRS account is prepared ?

The accountant prepares this document. to avoid confusion in the account

Why the balance difference between a cash book and a pass book occurs. ?

?    Want to record this change in the account ?

  • yes If the transactions recorded in the pass book are not recorded in the cash book then the transaction must be recorded in the cash book.

  • If the transaction recorded in the cash book is not recorded in the pass book then this transaction will be recorded in the pass book after completing some verification

?    How to detect and record changes ?

first : Take the two documents |cash book (bank A/C ) and pass book (bank statement )

example of a cash book (bank A/C ) and pass book (bank statement )

    Example of bank statement

Bank Statement -BRS- MakingAccount.com

example of bank account

bank A/C
dateparticularamountdateparticularamount
01/08/20 To balance b/d 33 700 01/08/20 By internet and phone bill A/C 50
01/08/20 To cash A/C 500 05/08/20 By brokerage A/C 250
03/08/20 To Alex A/C 1 800 05/08/20 By Nemiex A/C 300
04/08/20 To Almas A/C 2 400 07/08/20 By Helen Ong A/C 900
06/08/20 To Valuable Rent Services Company A/C 100 08/08/20 By salary A/C 450
21/08/20 To cash A/C 5 000 08/08/20 By wages A/C 150
28/08/20 To Carl A/C 100 08/08/20 By electric charges A/C 300
29/08/20 By Bablu A/C 1 800
31/08/20 By rent A/C 200
31/08/20 By server renewal charges A/C 50
31/08/20 By balance C/d 39 150
43 600 43 600

?    How to detect changes ?

Those transactions are only recorded in the pass book

  1. 08/08/20 Collected service $ 700 +
  2. 08/08/20 Payment service $ 50 -
  3. 13/08/20 Payment service charges $ 10 -
  4. 13/08/20 Collected service charges $ 20 -
  5. 13/08/20 Credit services charges $ 70 -
  6. 15/08/20 Bank interest received $ 2 500 +
  7. 16/08/20 Bank interest paid $ 200 -
  8. 16/08/20 bank loan $ 700 -

How to find the first two Transaction

You can find this transaction by looking at the documents related to the banking services used by the company

Those transactions are only recorded in the cash book .....

  1. 29/08/20 Bablu A/C $ 1800 -
  2. 28/08/20 Carl A/C $ 100 +
  3. 30/08/20 rent A/C $ 200 -
  4. 30/08/20 server renewal charges $ 50 -

How To Find The First Two Transaction

If you search into Transaction note based on the date and amount of the account recorded in the ledger, you will know the full details of that account

transaction note information


?    How to Record changes ?

bank reconciliation statement

1    Pick up the cash book balance first because only the cash book can record the changes immediately.

2    Bank withdrawal should be deducted from the cash book balance and the bank deposit should be added with the cash book balance

note : The purpose of preparing this BRS is to convert the cash book balance equal to the pass book balance

3    Only if the transactions recorded in the cash book are taken becouse can the pass book and the cash book balance be shown equally.

bank reconciliation statement
date particular amountamount
cash book balances 39 150
These transactions are recorded in pass book only (withdrawal) (-)
08/08/20 Insurance Paid 50
13/08/20 Payment Service Charges10
13/08/20 Collected Service Charges 20
13/08/20 Credit Services Charges70
16/08/20 Bank Interest Paid200
16/08/20 Bank Loan700(-)1050
______
38100

These transactions are recorded in pass book only(deposit ) (+)

08/08/20 Interim Divident Recived 700
08/08/20 interst recived 2500(+)3200
______
41300

These transactions are recorded in cash book only (credit) (+)

29/08/20 The Cheque Given To Bablu Has Not Yet Been Paid To The Bank 1 800
30/08/20 Rent A/C 200
30/08/20 Server Renewal Charges A/C 50(+)2050
______
43350

cash book only debit the entery (debit) (-)

28/08/20 The Cheque Received From Carl Has Not Yet Been Paid To The Bank 100(-)100

bank book balances

43 250

 ✅     Transactions Recorded only in the book account after the preparation of this BRS should be Recorded in the cash book on the same date

 ✅     Transactions Recorded only in the cash book do not need to be taken out of the cash book immediately

 ✅     You must wait until the expiration date for this transaction

If this transaction is completed before the expiration date, you must change the date of payment on the transaction note.

To know about the transaction note learn now
bank A/C
dateparticularamountdateparticularamount
01/08/20 To balance b/d 33 700 01/08/20 By internet and phone bill A/C 50
01/08/20 To cash A/C 500 05/08/20 By brokerage A/C 250
03/08/20 To Alex A/C 1 800 05/08/20 By Nemiex A/C 300
04/08/20 To Almas A/C 2 400 07/08/20 By Helen Ong A/C 900
06/08/20 To Valuable Rent Services Company A/C 100 08/08/20 By salary A/C 450
21/08/20 To cash A/C 5 000 08/08/20 By wages A/C 150
28/08/20 To Carl A/C 100 08/08/20 By electric charges A/C 300
08/08/20 Interim Divident A/C 700 29/08/20 By Bablu A/C 1 800
08/08/20 Interst A/C 2500 31/08/20 By rent A/C 200
31/08/20 By server renewal charges A/C 50
08/08/20 Insurance Paid A/C 50
13/08/20 Payment Service Charges A/C 10
13/08/20 Collected Service Charges A/C 20
13/08/20 Credit Services Charges A/C 70
16/08/20 Bank Interest A/C 200
16/08/20 Bank Loan A/C 700
31/08/20 By balance C/d 38100
46800 46800
01/09/20 By balance b/d 38100

Transactions recorded only with the bank book should be recorded in the journal and recorded in the ledger

example of journal

dateparticularamountamount
13/08/20 Payment Service Charges A/C A/C D 10
to bank A/C 10
Payment Service Charges paid

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