Bank Reconciliation Statement (BRS) – Flashcards

Front

What is a Bank Reconciliation Statement (BRS)?

Back

A statement prepared by a business to match the Cash Book balance with the Pass Book balance.

Front

Why is a Bank Reconciliation Statement needed?

Back

To find the correct balance and ensure both books match due to timing differences, errors in recording, and unrecorded transactions.

Front

What are common reasons for differences between Cash Book and Pass Book?

Back

1. Cheques issued but not presented 2. Cheques deposited but not cleared 3. Bank charges 4. Interest credited by bank 5. Direct deposit by customers 6. Wrong entries.

Front

What should you do if cheques are issued but not presented?

Back

Add to Cash Book.

Front

What should you do if cheques are deposited but not cleared?

Back

Subtract from Cash Book.

Front

What should you do if there are bank charges?

Back

Subtract from Cash Book.

Front

What should you do if there is a direct deposit by a customer?

Back

Add to Cash Book.

Front

What is the format of a Bank Reconciliation Statement?

Back

Start with either the Cash Book balance or Pass Book balance, then add or subtract items that cause the difference.

Front

What is the conclusion of using a Bank Reconciliation Statement?

Back

BRS helps you find errors, track missing transactions, and match bank and company records.

Front

What does Cash Book represent?

Back

Our book.