How to prepare the basic BRS. Explain with the proper explanation for each statement? don't end any links...
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Need of BRS
Rules to make BRS
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Need of BRS
- To determine the actual value of the cash book and the passbook
- To check the accuracy of the entries
- To detect embezzlement of amount
- To identify unrecorded or omitted entries.
- Cheques issued by the business to its suppliers or other parties may not have been presented for payment.
- Cheques received from customers and deposited may not have been collected by the banker.
- Deposits may have been directly made by the customers into the bank account of the enterprise.
- Collection charges, service charges and interest on overdraft charged by the banker. The business can ascertain the exact amount of charges and record them in the cash book only after the receipt of the bank statement.
- Wrong entries made by the business in the Cash Book or errors committed by the bank in its ledger.
Rules to make BRS