Question

What is bank reconciliation statment??

Answer 1

A statement declared to explain the causes of disagreement between the cash book and pass book balances of a business organization wherein the difference between the two books is reconciled or adjusted by adjusting the causes of disagreement is called a BRS. It is prepared on the basis of postings made in the Bank Column of a Cash Book and all postings in the pass book. Though, Pass Book and Cash Book may contain the same records of transactions their balances aren't always the same as such this statement is prepared to reconcile the balance in either of the accounts by the way to addition or subtraction from the necessary balances mentioned.