Bank Reconciliation Statement – Step-by-Step
Now let's put everything together and solve complete BRS problems!
Format of BRS (Starting from Cash Book Balance)
Bank Reconciliation Statement as on [Date]
| Particulars | Add (₹) | Less (₹) |
|---|---|---|
| Balance as per Cash Book | ||
| Add: | ||
| - Cheques issued but not presented | ||
| - Interest credited (if not in CB) | ||
| - Direct deposits (if not in CB) | ||
| Less: | ||
| - Cheques deposited but not cleared | ||
| - Bank charges (if not in CB) | ||
| - Standing instructions (if not in CB) | ||
| - Dishonored cheques (if not in CB) | ||
| Balance as per Pass Book |
Problem 1: Complete BRS
Given:
- Cash Book balance (Bank column): ₹75,000 (Dr.)
- Pass Book balance: ₹82,300 (Cr.)
Reasons for difference:
- Cheques issued ₹12,000 not yet presented
- Cheques deposited ₹8,000 not yet cleared
- Bank charges ₹200
- Interest credited ₹500
- Direct deposit by customer ₹15,000
Solution:
Bank Reconciliation Statement as on 30th April 2024
| Particulars | Amount (₹) |
|---|---|
| Balance as per Cash Book (Dr.) | 75,000 |
| Add: | |
| Cheques issued but not presented | 12,000 |
| Interest credited | 500 |
| Direct deposit by customer | 15,000 |
| Total additions | 27,500 |
| Less: | |
| Cheques deposited but not cleared | 8,000 |
| Bank charges | 200 |
| Total deductions | (8,200) |
| Balance as per Pass Book (Cr.) | 94,300 |
Wait! This doesn't match ₹82,300. Let me recalculate...
Actually, the given Pass Book balance ₹82,300 seems incorrect based on the data, OR there's a missing item. In exams, always show your working - if it doesn't match, state "Difference of ₹12,000 may be due to unrecorded item."
Problem 2: With Overdraft
Given:
- Cash Book: ₹15,000 (Cr.) - Overdraft
- Pass Book: ₹18,500 (Dr.) - Overdraft
Differences:
- Cheque issued ₹5,000 not presented
- Bank charges ₹200
- Interest on overdraft ₹300
Solution:
| Particulars | Amount (₹) |
|---|---|
| Overdraft as per Cash Book (Cr.) | 15,000 |
| Add: | |
| Bank charges | 200 |
| Interest on overdraft | 300 |
| Total additions | 500 |
| Less: | |
| Cheques issued but not presented | (5,000) |
| Overdraft as per Pass Book (Dr.) | 10,500 |
Note: With overdraft, logic reverses slightly!
Problem 3: Comprehensive
Cash Book shows: ₹1,00,000 (Dr.)
From Pass Book, you discover:
- Cheques issued: ₹25,000 (₹15,000 presented, ₹10,000 not presented)
- Cheques deposited: ₹30,000 (₹20,000 cleared, ₹10,000 not cleared)
- Bank charges: ₹500
- Interest credited: ₹1,200
- Insurance premium auto-debited: ₹3,000
- Customer deposited directly: ₹12,000
- Dividend collected by bank: ₹2,500
Step 1: Identify what's NOT in Cash Book:
- Bank charges ₹500 ❌
- Interest ₹1,200 ❌
- Insurance ₹3,000 ❌
- Direct deposit ₹12,000 ❌
- Dividend ₹2,500 ❌
Step 2: Identify timing differences (already in Cash Book):
- Cheques issued not presented: ₹10,000 ✅
- Cheques not cleared: ₹10,000 ✅
Step 3: Prepare BRS:
| Particulars | Amount (₹) |
|---|---|
| Balance as per Cash Book | 1,00,000 |
| Add: | |
| Cheques issued not presented | 10,000 |
| Interest credited | 1,200 |
| Direct deposit | 12,000 |
| Dividend collected | 2,500 |
| Less: | |
| Cheques not cleared | (10,000) |
| Bank charges | (500) |
| Insurance premium | (3,000) |
| Balance as per Pass Book | 1,12,200 |
Quick Tips for Exams
- Read carefully: Is it Cash Book balance or Pass Book balance given?
- Identify: Which items are NOT in Cash Book?
- Remember:
- Cheque issued not presented → ADD
- Cheque deposited not cleared → LESS
- Check: Final answer should be reasonable
- Show working: Even if answer doesn't match, you get marks for method
Quiz
Test Your Knowledge
Question 1 of 5
1. In BRS starting from Cash Book balance, cheque issued but not presented is:
💡 Final Wisdom: "BRS is like solving a puzzle. Each piece (difference) has its place. Put them together correctly, and the picture (matching balances) becomes clear!"