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  • Bank Reconciliation Statement

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    Rakiya Zainab
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    A bank reconciliation statement reconciles the differences between a business's cash book and bank statement. It ensures the two account balances match. To prepare a BRS, entries in the cash book and bank statement are compared. Unpresented cheques and uncredited deposits that appear in one but not the other are recorded. The final BRS shows the new balance per cash book, adjustments for unpresented cheques and uncredited deposits, and the balanced balance per bank statement.

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    A bank reconciliation statement reconciles the differences between a business's cash book and bank statement. It ensures the two account balances match. To prepare a BRS, entries in the cash book and bank statement are compared. Unpresented cheques and uncredited deposits that appear in one but not the other are recorded. The final BRS shows the new balance per cash book, adjustments for unpresented cheques and uncredited deposits, and the balanced balance per bank statement.

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    © All Rights Reserved
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    14 views10 pages

    Bank Reconciliation Statement

    Uploaded by

    Rakiya Zainab
    A bank reconciliation statement reconciles the differences between a business's cash book and bank statement. It ensures the two account balances match. To prepare a BRS, entries in the cash book and bank statement are compared. Unpresented cheques and uncredited deposits that appear in one but not the other are recorded. The final BRS shows the new balance per cash book, adjustments for unpresented cheques and uncredited deposits, and the balanced balance per bank statement.

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    © All Rights Reserved
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    of 10

    BANK

    RECONCILIATION
    STATEMENT
    Chapter 13
    Bank Reconciliation Statement

    • The Cash book is made from the point of view of the business . This
    means any payments received are debited to the cash book and any
    payment made is credited to the cash book.
    • The Bank Statement is is prepared from the banks point of view so
    items which appear as a debit in the cash book, appear as credit on
    the bank statement.
    INTRODUCTION TO BANK RECONCILIATION
    STATEMENT
    BANK RECONCILIATION STATEMENT
    BANK RECONCILIATION STATEMENT
    So, What is a BRS

    • A Bank Reconciliation Statement is a statement prepared


    periodically to ensure that the bank account of the business the
    Cash book of the Business matches.
    • Bank account column in the cash book = Bank statement
    • Steps to Prepare a Bank Reconciliation Statement:
    • Compare the entries in the Cash book and the bank account
    • Enter all unticked items in the Cash book from the bank account
    • Prepare a Bank Reconciliation Statement
    Format of a Bank Reconciliation Statement

    New Balance as per Cash book


    +Add unpresented Cheques
    - Uncredited deposits
    =Balance As Per Bank Statement

    New balance+upc-Ucd=bs balance


    New balance=bs balance-upc+ucd
    Unpresented Cheque and Uncredited deposits

    • Unpresented Cheque- It is a cheque which has been issued but the


    payment has not yet appeared on the bank statement. The payment
    will have been credited to the business cash book when the cheque
    was issued.
    • Uncredited Deposits- It is the amount which has been received but
    the receipt has not yet appeared on the bank statement.
    How to Prepare a BRS

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