ABHINANDAN JAIN (CA Student) (886 Points)
08 May 20121. I want to know the Purpose of Checking BRS.
2. How it can be checked...?
3. What will happen if cheque presented subsequently not encashed..?
4. Is it possible that Client will show cheque issued but wiil keep it in their drower..... if yes then wht benefit will client assume...pls explain with a example...
5.Any probable query with solution....
Lakshmi
(Student)
(1836 Points)
Replied 09 May 2012
1.Bank reconciliation statements reconcile the bank's records with your client's general ledger. This reconciliation should be completed monthly to check for errors or unauthorized withdrawals. Bank reconciliation statements are an important part of the financial auditing process that every business must do.
2.While checking go through the previous month brs to connform whealther any cheques not met in previous months are met in the current month. Then cross-check the brs with bank passbook/bank statement and with the bank book of your client's.There may be some cheques outstanding for the current month,which may be met in the subsquent month.
3.If the cheque not encashed within the prescribed time it will become stale cheque,so reverse entry should be made by your client.
4.If the client keeps his cheque in the drower you can verify it at the time of physical verification of cash/cheques on hand.
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