Formats of BRS

When your cash book shows a positive (debit) balance, it means you have money in your bank account—this is a favourable balance.

When your cash book shows a negative (credit/overdraft) balance, it means you have withdrawn more than you have (you owe the bank)—this is called an overdraft or unfavourable balance.

A positive (credit) balance in your passbook means the bank owes you money (you have deposits left to use)—this is a favourable balance.

A negative (debit/overdraft) balance in your passbook means you owe money to the bank because you spent more than you had—also called an overdraft or unfavourable balance.

                                     Bank Reconciliation Statement
                                                As on __________

Table Contents Explained

1. Heading:

"Bank Reconciliation Statement As on ________": Indicates the date for which reconciliation is prepared.

2. Columns:

• Particulars: This column lists the type of entries/adjustments.
• Amount (₹): These two columns record the values added or subtracted.

3. Rows:

Bank balance/overdraft as per cashbook/passbook: Start with the balance from either book (cashbook or passbook).

Add: Reasons that would increase the balance of the other book: List items (like cheques issued but not presented, interest received, etc.) that should be added to reconcile the difference.

Less: Reasons that would decrease the balance of the other book: List items (like bank charges, cheques deposited but not yet credited, etc.) that should be subtracted.

Bank balance/overdraft as per passbook/cashbook: This final row displays the reconciled balance after all additions and subtractions.

4.Note Below Table:

• “Balance becomes overdraft when the answer is with a negative (-) sign and vice versa.”
• This means if the result is negative, it represents an overdraft (you owe the bank).

How to Use This Format

1. Start with the opening balance from your cash book or passbook.

2. List and add all reasons that increase the other book’s balance.

3. List and subtract all reasons that decrease the other book’s balance.

4. Arrive at the reconciled balance, which explains the difference between your cash book and passbook.

Format

How the Format Works

1. Start with the balance given (either from the cash book or passbook). Put this in the appropriate column:

• Favourable (positive) balance: enters the Plus column.
• Overdraft (negative) balance: enters the Minus column.

2. Add (Plus column): List and total all items that increase the balance of the book you're moving toward, such as

• Cheques issued but not yet presented
• Interest credited by the bank
• Direct deposits not yet recorded in the books

3. Subtract (Minus column): List and total all items that decrease the balance, like

• Cheques deposited but not yet cleared
• Bank charges and fees
• Direct debits or payments by the bank not yet entered in the books

4. Total the columns and subtract the minus total from the plus total. The difference gives you the reconciled balance (or overdraft) as per the other book.

• Positive balance as per cash book: You have money in your bank account (favourable balance).

• Negative balance as per cash book (overdraft): You owe the bank because you withdrew more than you have (overdraft/unfavourable balance).

• Positive balance as per passbook: The bank owes you money (favourable balance).

• Negative balance as per passbook (overdraft): You owe money to the bank (overdraft/unfavourable balance).

• Standard Add-Less/Statement Format:
  The most common format lists the starting balance (cash book or passbook), then separately adds reasons that increase the other book’s balance and subtracts reasons that decrease the other book’s balance, resulting in the final reconciled balance.

• Plus-Minus Format:
  An alternative format uses two columns—one for amounts to be added and one for amounts to be subtracted—for a clear visual reconciliation process.

          How to Use BRS Formats:

1. Begin with the balance as per the cash book or passbook;
2. Adjust by adding amounts not yet reflected in the starting book but present in the other, then subtract the relevant unrecorded or uncleared items;
3. Arrive at the reconciled balance, explaining the difference between your records and the bank’s.