Class 11 Accountancy Workbook:
Mastering Bank Reconciliation Statements (BRS)
[PAGE 1: THE CORE CHEAT SHEET]
A Bank Reconciliation Statement (BRS) is a secondary statement prepared by a business entity to reconcile
and explain the differences between the bank balance shown in its Cash Book and the balance shown in the
Bank Pass Book (Bank Statement) on a specific date.
Add vs. Less Cheat Sheet (Starting from Cash Book Balance)
When your baseline is the Balance as per Cash Book, your goal is to modify it to match the real Bank Pass
Book. Follow these strict logical rules:
• ADD (+): Use this when a transaction causes the Bank Pass Book balance to be higher than your Cash Book
balance.
- Cheques issued but not yet presented for payment: Money has not left the bank yet.
- Direct deposit into bank by a customer: Bank balance increased directly, unknown to the Cash Book.
- Interest allowed or credited by the bank: Free money added directly to the bank account.
• LESS (-): Use this when a transaction causes the Bank Pass Book balance to be lower than your Cash Book
balance.
- Cheques deposited or paid into bank but not yet cleared/collected: Money has not arrived in the bank yet.
- Bank charges, interest, or fees debited by the bank: Bank deducted money directly.
- Direct payments made by the bank via standing instructions: Insurance/Rent paid by bank directly.
[PAGES 2 & 3: COMPREHENSIVE PRACTICE PROBLEMS]
Problem 1: Jayakumar
From the following particulars, prepare a bank reconciliation statement of Jayakumar as on 31st December,
2016:
(a) Balance as per cash book Rs. 7,130
(b) Cheque deposited but not cleared Rs. 1,000
(c) A customer has deposited Rs. 800 into the bank directly
Problem 2: Kamakshi Traders
From the following particulars of Kamakshi Traders, prepare a bank reconciliation statement as on 31st March,
2018:
(a) Debit balance as per cash book Rs. 10,500
(b) Cheque deposited into bank amounting to Rs. 5,500 credited by bank, but entered twice in the cash book
(c) Cheques issued and presented for payment amounting to Rs. 7,000 omitted in the cash book
(d) Cheque book charges debited by the bank Rs. 200 not recorded in the cash book
Mastering Bank Reconciliation Statements (BRS)
[PAGE 1: THE CORE CHEAT SHEET]
A Bank Reconciliation Statement (BRS) is a secondary statement prepared by a business entity to reconcile
and explain the differences between the bank balance shown in its Cash Book and the balance shown in the
Bank Pass Book (Bank Statement) on a specific date.
Add vs. Less Cheat Sheet (Starting from Cash Book Balance)
When your baseline is the Balance as per Cash Book, your goal is to modify it to match the real Bank Pass
Book. Follow these strict logical rules:
• ADD (+): Use this when a transaction causes the Bank Pass Book balance to be higher than your Cash Book
balance.
- Cheques issued but not yet presented for payment: Money has not left the bank yet.
- Direct deposit into bank by a customer: Bank balance increased directly, unknown to the Cash Book.
- Interest allowed or credited by the bank: Free money added directly to the bank account.
• LESS (-): Use this when a transaction causes the Bank Pass Book balance to be lower than your Cash Book
balance.
- Cheques deposited or paid into bank but not yet cleared/collected: Money has not arrived in the bank yet.
- Bank charges, interest, or fees debited by the bank: Bank deducted money directly.
- Direct payments made by the bank via standing instructions: Insurance/Rent paid by bank directly.
[PAGES 2 & 3: COMPREHENSIVE PRACTICE PROBLEMS]
Problem 1: Jayakumar
From the following particulars, prepare a bank reconciliation statement of Jayakumar as on 31st December,
2016:
(a) Balance as per cash book Rs. 7,130
(b) Cheque deposited but not cleared Rs. 1,000
(c) A customer has deposited Rs. 800 into the bank directly
Problem 2: Kamakshi Traders
From the following particulars of Kamakshi Traders, prepare a bank reconciliation statement as on 31st March,
2018:
(a) Debit balance as per cash book Rs. 10,500
(b) Cheque deposited into bank amounting to Rs. 5,500 credited by bank, but entered twice in the cash book
(c) Cheques issued and presented for payment amounting to Rs. 7,000 omitted in the cash book
(d) Cheque book charges debited by the bank Rs. 200 not recorded in the cash book
