4 Financial Accounting · 4.3 Bank reconciliation and trial balance

4.3.1 Bank reconciliation statement: causes of difference and preparation

A bank reconciliation statement (BRS) is a statement the account holder prepares on a given date to explain, item by item, why the bank balance in the cash book differs from the balance in the pass book (bank statement), and to bring one to the other.

  • APPSC Paper I
  • Advanced level
  • 10 min read
  • Full course

Key terms

  • bank reconciliation statement
  • BRS
  • cash book
  • pass book
  • bank statement
  • cheques issued but not presented
  • cheques deposited but not credited
  • bank charges
  • direct deposit
  • standing instruction
  • dishonour of cheque
  • overdraft
  • favourable balance
  • unfavourable balance
  • amended cash book

What this note covers

  1. Core factsFoundation
  2. ExplainedStandard
  3. DeeperAdvanced
  4. Mains writingMains writing
  5. Common trapsFoundation
  6. Quick revisionFoundation

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