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Bank reconciliation process

Safir Abbas (1 Points)

02 January 2020

How do we adjust the deposits in transit and checks outstanding in bank reconciliation process?

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3 Replies

RAJA P M ("Do the Right Thing...!!!") (127355 Points)
Replied 02 January 2020

Can't understand Your query...!

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

Kapadia Pravin (17249 Points)
Replied 03 January 2020

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.