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Bank closing balance

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shwetha bhat

student

34 Points Posted on 13 October 2022

will it be there any difference in opening balance between Bank statement and financial statements as on 31st March

Replies (14)

Quick Summary

This discussion clarifies the potential differences between bank statement closing balances and financial statement closing balances, particularly around year-end dates like March 31st and April 1st. It's explained that discrepancies can arise due to outstanding cheques or deposits not yet cleared. The consensus is to use the balance as per your books (financial statements or ledger) for opening balance purposes in the next financial year, rather than the bank statement balance.

Yasaswi Gomes new

Finance

4592 Points Posted on 13 October 2022

1st April is th opening balances

Transactions occurs and every account is debited or credited

31 March is the closing final balance

Hiren Patel

Student

33 Points Posted on 13 October 2022

Yes, Due to reconciliation there might be different balance as per Bank Statement and Financial Statement.

shwetha bhat

student

34 Points Posted on 13 October 2022

Which one should i consider for opening balance purpose?

Yasaswi Gomes new

Finance

4592 Points Posted on 13 October 2022

If it is bank reconciliation, reconsiliation can be done based on the cash book or pass book.

Eswar Reddy S

CFO- at NHTF

58280 Points Posted on 14 October 2022

If cheques are then only there can be a difference

Abhilash wadhonkar

30 Points Posted on 14 October 2022

Should be taken on year ended asper your software.

Eswar Reddy S

CFO- at NHTF

58280 Points Posted on 15 October 2022

Bank balance as per ledger or balance sheet should be considered. The difference due to " Cheques issued but not cleared or Cheques deposited but not cleared " will be part of BRS

prasad Nilugal

GST Practitioner & Accounts

15136 Points Posted on 15 October 2022

Same thing I had told her in first query and reply , you have to take balance as per books ( Financial statement ) , to carry forward next year not as per bank statement .

Eswar Reddy S

CFO- at NHTF

58280 Points Posted on 15 October 2022

👍🏻👍🏻

Yasaswi Gomes new

Finance

4592 Points Posted on 16 October 2022

Accordingly there is always a small difference due to discrepencies in book keeping. The audit thrshold of 3% saves everyone in the company with errors. BRS is the easiest and tracking invoices the the next big challange.