Bank Reconciliation - Bank Reconciliation Statement (BRS)
What is Ba nk Reco nciliatio n Stateme nt The bank and depositor keep independent records of depositor’s account balances. For this bank prepares pass book and depositor prepares Cash Book . Every month the bank provides statement of depositor’s account to depositor and this statement is called bank statement. Due to timely differences or errors or mistakes, there may be possible that the balance of cash book does not equal to the balance of Pass Book. Hence, there is disagreement between two balances. Every month (if there is no difference then the depositor does not prepare statement but it is very rare), the depositor prepares a statement to provide the information about the causes of differences and give recommendation for reconciliation of the two balances. This statement of explanation is called Bank Reconciliation Statement . Causes Of Differe nces A nd Types of Errors In Ba nk Reco nciliatio n Stateme nt ( BRS) There are two ma...