BRS - Bank Reconciliation Statement

A bank reconciliation statement is a statement prepared by organizations to reconcile the balance of cash at bank in a company's own records with the bank statement on a particular date.

The differences may arise because of the following reasons:

☛ Cheques deposited into bank but not yet collected by bank

☛ Cheques issued by the organization but not yet presented for payment

☛ Cheques directly deposited by customers into the bank

☛ Bank charges debited by bank

☛ Interest credited or some receipts directly collected by bank based on org. request.

☛ Some payments directly made by bank based on the organizations request.

☛ So, the statement shows the reasons as what are the reasons for difference in balance.