Bank reconciliation process

Can't understand Your query...!

You only calculate inward and outward cheques and it's value with Your books and Bank Account...

You are talking about following ..Right

You mean Deposits in transit mean Cheques deposited but not cleared. (1)

And You mean Cheques outstanding mean Cheques issued by you but not yet presented for clearing. (2)

Both are items falling under BRS and while preparing BRS you have to subtract total amount of ( 1 ). and you have to add total amount of (2) from / to the book balance.

The process will take you to balance as per bank statement.

@ safir..


CHEQUES in transit to be adjusted for cash book.
so long as the CHEQUES are not deposited it's not effected in the passbook.