Question

Explain 5-6 merits and limitations of BRS (Bank Reconciliation Statement).

Answer 1

Merits are :-
1. Proof of accuracy between cash book and pass book.
2. Facilitates making up to date recording of unknown entries in cashbook
3. Mistakes in cash book and pass book is detected.
4. Facilities checking of both the books automatically.
5. Undue delay in clearance of cheques can be identified.