Bank recouncilation statement

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

29 May 2017 Dear Sir/Madam

I want Know What is Bank Reconciliation Statement? Why Should we prepare this? and How to prepare Please let me know?

This is urgent requirement

Regards

Sandeep Dharar

Sandeep Dharar (Expert)
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29 May 2017 It is the process of matching the bank book(of the assessee) with bank statement(provided by the respective bank). Suppose a cheque had been issued to the vendor dated 29/05/17 and the vendor deposited it on 3rd of Jun 17 and it get cleared approx on 5th of June. So the assessee must have done the payment entry(in his/her books of account) on 29th of may i.e, cheque date, but the amount deducted from the bank was on 5th June. So u must tally the transactions by putting the Bank date(from bank statement) in the books of accounts for the same transaction, through BRS gateway (don't change the transaction date in books of account). And at the end u will notice that the amount as per Bank and the closing fig. in the bank statement will get tallied.

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Querist : Anonymous

Querist : Anonymous (Querist)

30 May 2017 Thanks for your quick reply and really i am happy to you wrote details explanation. please tell me how to do it practically?
which one is correct books of account or bank statement ?

Sandeep Dharar

Sandeep Dharar (Expert)
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30 May 2017 Correct means?? Both ur books of account and Bank statement are correct, u only need to put the bank date against the respective book entry.

Querist : Anonymous

Querist : Anonymous (Querist)

30 May 2017 correct means which one i have to show in audit?

Sandeep Dharar

Sandeep Dharar (Expert)
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30 May 2017 Are baba, auditor will verify ur books with Bank statements only. So both r important. I think u r new to a job, u need guidance from a senior personal or any expert in the field of accounting.

Querist : Anonymous

Querist : Anonymous (Querist)

30 May 2017 Thank You for your information