Question

what is the main objective of preparing BRS
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Answer 1

ANSWER :

Bank Reconciliation Statement is the statement prepared to identify the reasons of the difference of the balance ay Bank as shown by the Cash Book and the balance at Bank as shown by the Pasś Book and reconcile balances thereof.

❖ The main objective of preparing Bank Reconciliation Statement is :-

• ➯ To reconcile the difference between the Bank Balance as shown by the Cash Book (Bank Column) and the Bank Balance as shown by the Pasś Book/Bank Statement.

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KNOW MORE :

• ❖ Bank Reconciliation Statement helps in locating the errors in Cash Book and Paśs Book.

• ❖ Bank Reconciliation Statement helps in checking the accuracy of Cash Book.

• ❖ Bank Reconciliation Statement is not an account and it is prepared in a separate sheet of paper.

• ❖ Bank Reconciliation Statement is prepared to verify the accuracy of the entries made in the Cash Book and Pasś Book.

• ❖ Bank Reconciliation Statement is needed to be prepared by every business enterprise for having a check and control on its transactions with its banker.

• ❖ Bank Reconciliation Statement is a statement prepared on a particular date to reconcile the balances shien by the Cash Book and Bank Statement.