News Depository Fiscal Establishment Reconciliation Contestation - Concept, Meaning, Definition As Well As Characteristics
The discussion "reconcile" means 'to brand compatible. It oft happens inwards line organization that two'sets of figures which should agree, for around argue create not. For example, nosotros powerfulness justice that a for certain net income should survive made inwards a given period, but inwards fact nosotros neglect to give this expected profit. Influenza A virus subtype H5N1 proficient accountant would seek to reconcile the ii sets of figures, examining the reasons for the discrepancy.
Perhaps the commonest of all such situations is the reconciliation of the Bank Account, every bit shown inwards our ledger, amongst the Bank Account inwards the Bank's Ledger, every bit shown when the Bank sends us a Bank Statement.
By reconciliation, the Cash Book repose tin survive proved yesteryear comparison it amongst the Bank Statement. Bank Reconciliation Statement is an of import purpose of the internal command organization over cash repose lying inwards the Bank.
At present, the major Indian Banks are inwards the physical care for of switching to a computerized organization which is changing the way inwards which Bank Statements are rendered to customers. However, this is unlikely to behaviour on the withdraw for Bank Reconciliation Statement.
Meaning:
Bank reconciliation Statement is a disceptation which is prepared to reconcile the balances shown yesteryear Cash Book together with Pass Books on a detail slate for a stated period. It contains a consummate together with satisfactory explanation of the divergence inwards balances every bit per cash mass together with overstep book. It is merely a uncomplicated physical care for to essay out the cash mass repose is non a purpose of the mass keeping system.
Definitions:
Following are the master copy definitions of Bank Reconciliation Statement :
According to R.G. Willicyns, "The disceptation which is prepared to reconcile the repose every bit expressed yesteryear the Bail for the client together with the repose every bit per Cash Books, called Bank Reconciliation Statement."
According to carter, "It is a disceptation which is prepared to reconcile the BankBalance shown yesteryear Cashbook together with the repose shown yesteryear Bank Statement."
According to Batlihpi, "A Reconciliation Statement is, therefore, prepared at periodical intervals amongst a persuasion to dot the items which movement such understanding betwixt the repose every bit per the Bank Columns of the Cash Book together with the Bank Pass Book on whatever such date."
Ideal Definition: Bank Reconciliation Statement is a disceptation which reconciles the balances shown yesteryear Cash Book together with the Pass Book on whatever detail appointment yesteryear showing the items of divergence betwixt the ii accounts.
Characteristics or Features of BRS:
Following are the master copy characteristics/ features of Bank Reconciliation Statement:
1. It is prepared yesteryear the client (trader), i.e., holder of the account.
2. It Contains a consummate together with satisfactory explanation of the divergence inwards balances every bit per the Cash Book together with Pass mass (Bank Statement).
3. Normally it is prepared on closing appointment of accounts, i.e., Dec. 31st. Jan. 31 March 31.
4. Sometimes it is prepared at the destination of the every calendar month afterward preparing Cash Book or regularly afterward for certain interval to cheque the accuracy of Cash Book.
5. It is neither magazine liar a Ledger.
6. It is prepared :in a disceptation faun amongst the...vertical presentation of facts.
7. It starts amongst a given repose of whatever mass together with ends amongst repose of other book, e.g., if it starts amongst Balance every bit per Cash Book, so ends amongst Balance every bit per Pass Book.
8. For arithmetical calculations all the reasons are grouped inwards 'ADD' together with 'LESS' categories respectively.
9. It shows causes of disagreement together with amount thereof.
10. It is non legally compulsory to ready Bank Reconciliation Statement.
11. It shows the depository fiscal establishment repose every bit per Cash Book or Pass Book (Bank Statement) at the destination of the period.