what is bank reconciliation statement
Answers
Answer:
A bank reconciliation is the process of matching the balances in an entity's accounting records for a cash account to the corresponding information on a bank statement. The goal of this process is to ascertain the differences between the two, and to book changes to the accounting records as appropriate.
Bank Reconciliation Statement is a statement which records differences between the bank statement and general ledger. ... A BRS means matching records for a cash account entries corresponding to the bank statement. BRS checks the dissimilarity found between the two and makes appropriate changes.
One example is Entries relating to interest earned and bank charges. Transactions get immediately recorded in the passbook of the bank in such cases. ... As a result, a difference comes in the balances of cash book and passbook. For elimination of balance, a BRS comes in handy.