Dear All
My Bank Balance is showing Rs. 100000/- on 31st March 2013 as per my books. But Actual Bank balance is Rs. 50,000/- as on 31st March as per Bank statement.
The reason for difference is that we have deposited Rs. 50000/- cheque on 31st March but not credited by bank till 31st March. ( Hence, it will reflect in BRS......but on the date of Balance sheet ie: 31st March what amount to be shown in Balance sheet is it Rs. 100000/- or Rs. 50000/-
Please advise & clear the concept.
Thanks
Its not about choice guys !! It has to be shown as the Bank Book Balance, as we follow tha accrual system of accounting. Receipt of cheque is shown as Increase in Bank and Reduction in debtors. Deposit or non deposit of cheque is only about realising the cheque. So, you need to show the Bank Book Balance of Rs. 100000.
Thanks & Regards
CA Vikram Kapoor
B.Com, FCA, CIA, ISA, CISA, CFE
Ex-Faculty, NIRC of ICAI (2011-12)
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