Bank Reconciliation Statement (BRS): When Extracts from Cash Book and Pass Book are given

A statement showing all the items of difference between the bank column of the Cash Book and the bank balance depicted in the Pass Book on a particular date and for a particular period of time is called a Bank Reconciliation Statement. It is a statement prepared on a particular date to reconcile the bank balance of the Cash Book with the balance as per the Pass Book or vice-versa. When a Bank Reconciliation Statement is prepared, it is checked whether the extracts from the cash book and passbook are given for the same period or the extracts from the cash book and passbook are given for different periods.

Bank Reconciliation Statement (when Cash Book and Pass Book are given for the same period)

If the cashbook and passbook are given for the same month, then the items appearing in the cash book and passbook will be compared to identify the items which appear in the cash book, but not in the passbook and the items which appear in the passbook but not in the cash book. These items have caused differences in the balances of the cash book and passbook and require reconciliation.

Items appearing on the debit side of the cash book are compared with the items appearing on the credit side of the passbook and the items which are appearing in both the books are ticked. Similarly, items appearing on the credit side of the cash book are compared with the debit side of the passbook, and the items which are appearing in both books are ticked.

Illustration:

From the following extract from the cash book and the passbook from the month of March 2023. Prepare the bank reconciliation statement as of 31st March 2023:

Solution:

Bank Reconciliation Statement (when Cash Book and Pass Book are given for the different periods)

If both the books are given for different months e.g. cash book is given for March and the passbook is given for April, in that case, the debit side of cash book (March) will be compared with the credit side of passbook (April) and the items appearing in both the books will be noted. Because these are the items that have caused difference in the balance and hence require reconciliation. The common items will represent the cheques deposited in the month of March and credited in bank in the month of April.

Similarly, items appearing on the credit side of the cash book (march) will be compared with the debit side of the passbook (April) and the items will represent the cheques issued in March, but presented for payment in April.

Illustration:

From the following extract from the cash book and the passbook from the month of March 2023. Prepare the bank reconciliation statement as of 31st March 2023:

Solution: