Topics
Introduction to Book-Keeping and Accountancy
- Accounting
- Book-Keeping
- Accountancy
- Book-Keeping vs. Accountancy
- Basis (Methods) of Accounting System
- Qualitative Characteristics of Accounting Information
- Basic Terms in Accounting
- Transaction
- Capital and Drawings
- Debtors, Creditors and Bad Debts
- Expenditure and Its Types
- Discount and Its Types
- Solvent Person vs. Insolvent Person
- Accounting Year
- Trading Concerns vs. Not for Profit Concerns
- Concept of Goodwill
- Fundamentals of Business Earnings
- Concepts of Assets, Liabilities and Net Worth
- Accounting Principles
- Accounting Concepts
- Core Accounting Concepts
- Accounting Standards
Meaning and Fundamentals of Double Entry Book-Keeping
Journal
- Accounting Documents
- Goods and Service Tax(GST)
- Types of Accounting Documents
- Voucher
- Tax Invoice (Under GST)
- Credit Memo
- Receipt
- Cheque
- Types of Cheques
- Books of Accounts
- Books of Accounts > Journal
- Journal Entries
- Journal Entries > Goods Account
- Journal Entries > Recording Discount in Journal
- Journal Entries > Other Important Journal Entries
Ledger
Subsidiary Books
- Concept of Subsidiary Books
- Cash Book
- Cash Book > Simple Cash Book (Single Column Cash Book)
- Cash Book > Two Column Cash Book (With Cash and Bank Columns)
- Cash Book > Petty Cash Book
- Simple Petty Cash Book
- Analytical Petty Cash Book
- Purchase Book
- Purchase Return Book
- Sales Book
- Sales Return Book
- Journal Proper
Bank Reconciliation Statement
- Accounting Documents Used in Banking
- Accounting Documents Used in Banking
- Pay-in-Slip
- Withdrawal Slip
- Bank Pass Book
- Bank Statement
- Bank Advice
- Concept of Virtual Banking
- Bank Reconciliation Statement(BRS)
- Cash Book vs Pass Book : Causes of Differences
- Time Difference(Regarding BRS)
- Errors and Omission Made by Bank or Businessman
- Formats of BRS
- Preparation of BRS
- Cash Book and Pass Book Comparison for Common Period
- Cash Book and Pass Book Balances for Different Periods
- Bank Balance as per Cash Book (Favourable / Debit Balance)
- Bank Balance as per Pass Book (Favourable / Credit Balance)
- Overdraft as per Cash Book (Unfavourable / Credit Balance)
- Overdraft as per Pass Book (Unfavourable/Debit balance)
- Reconciliation of Debtors and Creditors
Depreciation
Rectification of Errors
Final Accounts of a Proprietary Concern
Single Entry System
- Concept of Single Entry System
- Single Entry System vs. Double Entry System
- Parts of Single Entry System
- Statements of Affairs
- Statement of Profit or Loss
- Statement of Profit or Loss > Net Worth Method
- Practical Problems on Single Entry System
- Cash Book Balance vs. Overdraft – Steps for Reconciliation
- Example: Transactions Increasing/Decreasing Overdraft
- Real-Life Example: BRS Preparation
Maharashtra State Board: Class 11
Cash Book Balance vs. Overdraft – Steps for Reconciliation
| Aspect | Positive Balance (Debit) as per Cash Book | Overdraft (Credit) as per Cash Book |
|---|---|---|
| Starting Point | Favourable balance (amount you have at bank) | Unfavourable balance (overdraft—what you owe) |
| Nature of Adjustments |
|
|
Maharashtra State Board: Class 11
Example : Transactions Increasing/Decreasing Overdraft
| Transaction | Effect on Overdraft | Explanation / Why? |
|---|---|---|
| 1. Cheques issued but not yet presented | Decrease overdraft | The bank hasn’t paid yet, so you still have that money |
| 2. Cheques deposited but not yet credited/cleared | Increase overdraft | The amount is not yet in bank, so overdraft is greater |
| 3. Bank charges/interest debited by bank | Increase overdraft | The bank deducted fees—makes you owe more |
| 4. Direct deposit by customers (not in cash book) | Decrease overdraft | Money received by bank, so you owe less (not yet entered in cash book) |
| 5. Direct payment by bank (e.g., insurance, rent) | Increase overdraft | The bank paid on your behalf, increases amount you owe |
| 6. Interest/dividend credited (not in cash book) | Decrease overdraft | The bank added money; it reduces the overdraft |
| 7. Cheques/bills discounted but dishonoured | Increase overdraft | The bank reverses credit and increases amount you owe |
| 8. Wrong credit by bank | Decrease overdraft | The bank mistakenly gave you money, temporarily reduces the overdraft. |
| 9. Wrong debit by bank | Increase overdraft | The bank mistakenly debited your account, increases the overdraft. |
| 10. Errors in cash book (that reduce cash) | Increase overdraft | e.g., undercast receipts, overcast payments, missed credits—owe more |
| 11. Errors in cash book (that increase cash) | Decrease overdraft | e.g., overcast receipts, undercast payments, missed debits—owe less |
Important Terms:
-
Undercast means the total in the account book is less than it should be because amounts have been added up incorrectly or missed.
-
Overcast means the total in the account book is more than it should be because amounts have been added up incorrectly or extra amounts included
Maharashtra State Board: Class 11
Real-Life Example : BRS Preparation
Sarah runs a small shop. At the end of the month, her cash book shows an overdraft of ₹10,000 (she owes this to the bank). But after checking with the bank statement, she finds a few differences:
-
Cheque issued to a supplier for ₹4,000 did not reach the bank yet (not presented).
-
A customer paid ₹2,500 directly into the bank (not entered by Sarah).
-
The bank charged ₹250 for ATM withdrawal (Sarah forgot to record).
-
Sarah wrote ₹100 extra by mistake on the debit side of her cash book (overcast).
Let's prepare the BRS!
Bank Reconciliation Statement
| Particulars | Add (₹) | Less (₹) |
|---|---|---|
| Overdraft as per Cash Book | 10,000 | |
| Add: ATM charges not recorded | 250 | |
| 10,250 | ||
| Less: Cheque issued, not yet presented | 4,000 | |
| Less: Direct deposit by customer (not in cash book) | 2,500 | |
| Less: Debit side of cash book overcast (error) | 100 | |
| Overdraft as per passbook | 3,650 |
