Preparation of Reconciliation Statement :: Problem Solving

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Preparation of Reconciliation Statement :: Problem Solving

In solving problems involving preparation of a Bank Reconciliation Statement, you can make it look simple, if you can follow the following simple steps.

What you need to know?

The procedure explained above is to enable you to decide whether to add or deduct the amount involved in the reason for the difference.

What you really need to understand is the influence of the various bank transactions on the bank account balance and how and when they are recorded in the cash book and the pass book. In all the above situations the journal entry that you would have to recollect is the same.

If you apply the logical steps above and are thorough with the knowledge of recording the bank transactions in both the books, then preparing BRS is very simple.

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