Presentation on Bank Reconcilliation S

1. Purpose & Benefits of preparation of BRS*
By Amrit Raj

2. Index
What is Bank Reconciliation
Statement
Purpose /Importance of
preparation of Bank
Reconciliation Statement
Reasons for Differences in
Bank Pass Book and Cash
Book
Practical Points/Benefits of
Preparation of Bank
Reconciliation statement
Steps to Reconcile Bank
Statement

3. There should be no difference between Cash book and Pass Book.
There exists however a difference between the closing balances
of Our Cash Flow and Bank Statement (Bank Pass Book) on a
particular date due to certain Reasons**
The process of Bank Reconciliation gives an actual position of the
business. It is an effort to point out the reasons for non
agreement.
What is Bank Reconciliation Statement

4. To Prevent and Track :
Errors Which may have been committed
Undue Delay in Clearance of Cheques
Discourages Staff from Embezzlement
Purpose/Importance for Preparation for Bank
Reconciliation Statement

5. Reasons for Differences in Bank Pass Book and
Cash Book
Timing Differences
*Cheque Issued but not presented
*Cheques paid into bank but not presented
*Bills collected by bank on behalf of the customer
*Direct Payment by Bank
Due to Errors in Recording the entries.

6. Regular and timely reconciliation ensures following :
Any Bounced Cheque can be tracked and followed up with the
client.
If any extra charge has been credited in the pass book it can be
inquired in time and included in the books of account.
Practical Points/Benefits of Preparation of Bank
Reconciliation statement

7. Check Bank statement and Cash Book to identify the items which
have been omitted.
Prepare the bank reconciliation statement.
Steps to Reconcile Bank Statement