Preparation of bank reconciliation statement after adjusting cash book balance.

Harsha Lal- ACW Accounts at Edumarz

Ans- There are normally items which cause a difference in the cash and pass book balance,and we find some items which appear in the passbook only. So, a much simpler way to prepare the BRS is that first we will adjust all such items in the cash book to reach the adjusted  cash balance( amended balance). Then all the entries which are left over, due to the time gap in recording  are posted. Lastly, we prepare the Bank Reconciliation Statement.

With adjustment in cash book:-

If the balance at the bank, as per cash book adjusted will be 10000 thus:-

Cash Book (Bank Column)

Dr.                                                                     Cr.

BANK RECONCILIATION STATEMENT will appear as follows:-

Bank Reconciliation Statement

As on 31st December