Steps for preparing Bank Reconciliation Statement:

First step:

After preparing the format given below, start with the given bank balance (as the case may be).

Second step:

Debit BRS in case of Short Debit/ Omitted Debit/ Excess Credit in Cash book /Pass Book (as the case may be).

Third step:

Credit BRS in case of Short Credit/ Omitted Credit/ Excess Debit in Cash book /Pass Book (as the case may be).

Fourth step:

Calculate the difference of both the sides and put that amount on the side having short total. Give the name of that side having short total to the bank balance as per the other book i.e. Cash book or Pass Book (as the case may be).

 

Summary of the method:

(a) Start with one bank balance,

(b) Dr. BRS if Cash book or Pass book has not been debited or wrongly credited.

( c) Cr. BRS if Cash book or Pass book has not been credited or wrongly debited.

(d) Calculate the difference, put it on shorter side and give the name of this shorter side to the bank balance of the other book.

Format of Bank Reconciliation Statement 

Sr.No. Particulars Dr.(₹) Cr.(₹)
1. Bank Balance as per Cash Book/Pass Book. Xxx (xxx)
2. Cheques drawn but not presented. Xxx
3. Cheques paid into bank but not credited. Xxx
4. Bank Charges. Xxx
5. Bank Balance as per Pass Book/Cash Book. (xxx) xxx

It is a custom to write Add/Less with the particulars, for that, you can write ‘Add’ the particulars having the amount on the side of the starting balance and ‘Less’ with the particulars having the amount on the opposite side.

 

Various aspects dealt in Bank Reconciliation Statement:

Sr.No. Particulars Dr.(₹) Cr.(₹)
1. Bank (favorable) balance as per Cash Book. Xxx
2. Unfavorable (overdraft) balance as per Pass Book. xxx
3. Cheques issued but not presented for payment. Xxx
4. Cheques issued but dishonoured. Xxx
5. Cheques deposited but not recorded in cash book. Xxx
6. Interest on bank deposits not recorded in cash book. Xxx
7. Interest allowed by bank not recorded in cash book. Xxx
8. Bills collected by bank. Xxx
9. Direct deposits (payments by others) in bank. Xxx
10. Direct collection by the bank like dividend. Xxx
11. Short debit/omission of debit in cash book /pass book. Xxx
12. Excess credit in cash book/pass book. Xxx
13. Bank (favorable) balance as per Pass Book. Xxx
14. Unfavorable (overdraft) balance as per Cash Book. xxx
15. Cheques deposited but not cleared/encashed/collected. Xxx
16. Cheques deposited but dishonoured. Xxx
17. Discounted bills receivable dishonoured. Xxx
18. Cheques received but could not be deposited into bank. Xxx
19. Direct payment by the bank. Xxx
20. Bank /incidental /collection charges debited by bank. Xxx
21. Interest charged by bank. Xxx
22. Short credit/omission of credit in cash book /pass book. Xxx
23. Excess debit in cash book/pass book. Xxx

 

Special note

1. When entries as per cash book and pass book are compared for reconciliation, balances on the same date should be considered.

2. Only bank column of cash book is to be considered for this comparison with pass book.

Check for More Posts in This Category