मराठी
CBSECommerce (English Medium) Class 11
पाठ्यपुस्तक उत्तरे१२७३४
संकल्पना स्पष्टीकरण आणि व्हिडिओ३३७
अभ्यासक्रम

Preparation of BRS

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Topics

  • Steps to Prepare BRS
  • Tips for Adding and Subtracting
  • Introduction to the Rule of Plus and Minus in BRS
  • Reasons for Balance Mismatch between Cashbook and Passbook & Their Effects
  • Real-life Example
Maharashtra State Board: Class 11

Steps to Prepare BRS

1. Gather both books: Get your cash book and the bank’s passbook/statement (usually at month end).

2. Compare entries:

  • Debit (receipts) in Cash Book vs Credit (deposits) in Pass Book
  • Credit (payments) in Cash Book vs Debit (withdrawals) in Pass Book

3. Tick off matched items in both books. Unticked items are what cause differences.

4. List all unticked (unmatched) entries, like

  • Cheques issued but not presented
  • Cheques deposited but not credited
  • Bank charges, interest, direct payments, etc.

5. Analyze why each is unticked: Is it pending, missing, or a bank-only transaction?

6. Choose your starting balance (Cash Book or Pass Book).

7. Adjust for unticked items:

  • Follow the rule for adding/subtracting (see table below)
  • Prepare the BRS statement using these adjustments
Maharashtra State Board: Class 11

Tips for Adding and Subtracting

Situation Add Subtract
For BRS, starting with Positive Balance as per the cash book Credits Debits
For BRS, starting with Positive Balance as per the passbook Debits Credits
For BRS, starting with Overdraft as per the cash book Debits Credits
For BRS, starting with Overdraft as per the passbook Credits Debits
Maharashtra State Board: Class 11

Introduction to the Rule of Plus and Minus in BRS

The rule of plus and minus helps you know:

  • What items to add or subtract from your starting balance (cash book or passbook)

  • How to adjust for differences so both records agree.

Why Do We Need This Rule?

Items like cheques deposited, bank charges, or interest may appear in one book but not the other. Depending on which balance you start with (cash book or passbook) and whether it’s an overdraft (negative balance), you either add or subtract such items to reconcile the two books.

Maharashtra State Board: Class 11

Implementing the Rule of Plus and Minus

Reason for Discrepancy Cash Book Dr. Bal (+) Passbook
Cr. Bal (+)		 Cash Book
Cr. Bal (Overdraft) (+)		 Passbook 
Dr. Bal (Overdraft) (+)
1. Cheque deposited but not credited (−) (+) (+) (−)
2. Cheque issued but not presented for payment (+) (−) (−) (+)
3. Bank charges debited in passbook (−) (+) (+) (−)
4. Interest credited in passbook only (+) (−) (−) (+)
5. Interest debited in passbook only (−) (+) (+) (−)
6. Payments made by the bank recorded in the passbook only (−) (+) (+) (−)
7. Direct payment by customer into bank recorded in passbook only (+) (−) (−) (+)
8. Bills receivable discounted with bank dishonoured (recorded in passbook) (−) (+) (+) (−)
9. Cheque deposited into bank dishonoured, not recorded in cash book (−) (+) (+) (−)

  • (+) means ADD the item to reconcile the balance.

  • (−) means SUBTRACT the item to reconcile the balance.

Maharashtra State Board: Class 11

Real-life Example

Scenario (as of 31st December 2024):

  • Your cash book shows a balance of ₹12,000 at month-end.

  • When you check the passbook, there are some differences.

No. Transaction Description Amount (₹)
1 Cheque deposited for collection on 29th Dec, not yet credited by bank 3,000
2 Cheque issued to supplier on 27th Dec, not yet presented for payment 1,600
3 Bank charges debited in passbook only (not yet in cashbook) 120
4 Interest credited by bank, recorded only in the passbook 200
5 Interest debited by bank (overdraft interest), not in cash book 50
6 The bank paid insurance premium directly (as per standing instruction, not in cash book yet) 900
7 A customer of the business deposited money directly into bank account, only in the passbook. 1,400
8 Bills receivable discounted with bank, dishonoured (not yet recorded in cash book) 500
9 Cheque deposited into the bank was dishonoured, not recorded in cash book 700

Step-by-Step Preparation

1. List Your Transactions:

Go through both your cash book and passbook to spot all unmatched entries (see table above).

2. Apply the Rule of Plus and Minus (starting from the cash book balance):

Add:

  • Cheques issued but not presented (2)
  • Interest credited in passbook only (4)
  • Direct deposit by customer in passbook only (7)

Subtract:

  • Cheques deposited but not yet credited (1)
  • Bank charges debited in passbook only (3)
  • Interest debited in passbook only (5)
  • Insurance premium paid by bank (6)
  • Bills discounted/dishonoured, recorded only in passbook (8)
  • Cheque deposited, dishonoured, not recorded in cash book (9)

3. Create the Statement:

           Bank Reconciliation Statement as on 31st December 2024

Particulars Add (₹) Less (₹)
Balance as per Cash Book 12,000  
Add: Cheques issued but not presented 1,600  
Add: Interest credited in passbook only 200  
Add: Direct deposit by customer (not yet in cash book) 1,400  
Less: Cheques deposited but not yet credited   3,000
Less: Bank charges debited in passbook only   120
Less: Interest debited in passbook only   50
Less: Insurance premium paid by bank   900
Less: Bills receivable dishonoured (in passbook only)   500
Less: Cheque deposited dishonoured, not in cash book   700
Balance as per Passbook   9,930

Calculation:

  • Additions: 1,600 + 200 + 1,400 = 3,200

  • Deductions: 3,000 + 120 + 50 + 900 + 500 + 700 = 5,270

  • Final calculation: 12,000 + 3,200 - 5,270 = 9,930 

Related QuestionsVIEW ALL [53]

From the following particulars, prepare a bank reconciliation statement as at March 31, 2017.

  1. Balance as per cash book ₹ 3,200
  2. Cheque issued but not presented for payment ₹ 1,800
  3. Cheque deposited but not collected upto March 31, 2014 ₹ 2,000
  4. Bank charges debited by bank ₹ 150

From the following particulars prepare Bank Reconciliation Statement as on 30th June 2019. 

  1. Credit balance as per Pass Book ₹20,000.
  2. A cheque for ₹ 3,500 was issued and paid by bank, recorded in Pass Book as ₹ 5,300.
  3. Cheque deposited ₹ 9,700 collected by bank was not recorded in Cash Book.  
  4. Payment side of Cash Book was undercast by ₹100.
  5. Electricity bill paid by bank ₹ 6,200 was recorded twice in Pass Book.  

From the following particulars prepare Bank Reconciliation Statement as on 30th June 2019.

  1. Credit balance as per Pass Book ₹ 20,000.
  2. A cheque for ₹ 3,500 was issued and paid by bank, recorded in Pass Book as ₹ 5,300.
  3. Cheque deposited ₹ 9,700 collected by bank was not recorded in Cash Book.
  4. Payment side of Cash Book was undercast by ₹ 100.
  5. Electricity bill paid by bank ₹ 6,200 was recorded twice in Pass Book.

From the following particulars, prepare a bank reconciliation statement as at March 31, 2017.

  1. Balance as per cash book ₹ 3,200.
  2. Cheque issued but not presented for payment ₹ 1,800 Cheque deposited but not collected up to March 31, 2014 ₹ 2,000.
  3. Bank charges debited by bank ₹ 150.

Prepare bank reconciliation statement as on December 31, 2017. This day the passbook of Mr. Himanshu showed a balance of ₹ 7,000.

  1. Cheques of ₹ 1,000 directly deposited by a customer.
  2. The bank has credited Mr. Himanshu for ₹ 700 as interest.
  3. Cheques for ₹ 3,000 were issued during the month of 
    December but of these cheques for ₹ 1,000 were not presented during the month of December.

Prepare bank reconciliation statement as on 31st March, 2017 from the following extracts of cash book and bank statement.

Dr. Cash book (Bank column only) Cr.
Date Receipts Amount ₹ Date Payments Amount ₹
2017
March		     2017
March		    
1 To Balance b/d 9,000 4 By Drawings 1,700
3 To Ram 2,200 8 By Sumi 3,300
9 To Prem 1,500 12 By Salary 2,800
16 To Pavithra 3,400 16 By Kayal 1,700
23 To Devi 2,600 18 By Pooja 4,200
27 To Mani 1,100 26 By Sam 2,000
30 To Shankar 350 28 By Raheem 1,100
      30 By Rent 1,100
      30 By Balance c/d 2,250
    20,150     20,150

 

Date Particulars Dr.
Withdrawals ₹		 Cr.
Deposits ₹		 Balance
Dr./Cr.
2017
March		        
1 By balance b/d     9,000 Cr.
4 To cheque- drawings     8,300 Cr.
5 By cheque- Ram 700 2,200 10,500 Cr.
9 To cheque – Sumi     7,200 Cr.
11 By cheque- Prem 3,500 1,500 8,700 Cr.
12 To cheque – Salary     5,900 Cr.
17 To cheque – Kayal 2,800   4,200 Cr.
20 By cheque- Devi 1,700 2,600 6,800 Cr.
30 By interest received   900 7,700 Cr.
30 To bank charges 15   7,685 Cr.

From the following particulars of Simon traders, prepare a bank reconciliation statement as on 31st March, 2018.

  1. Debit balance as per bank statement ₹ 2,500
  2. Cheques deposited amounting to ₹ 10,000, not yet credited by bank.
  3. Payment through net banking for ₹ 2,000, omitted in the cash book

From the following particulars, prepare the Bank Reconciliation Statement as of 30th June 2019.

  1. Credit balance as per Pass Book ₹ 20,000.
  2. A cheque for ₹ 3,500 was issued and paid by the bank, recorded in the Pass Book as ₹ 5,300.
  3. The cheque deposited ₹ 9,700 collected by the bank was not recorded in the Cash Book.
  4. The payment side of the Cash Book was undercast by ₹ 100.
  5. The electricity bill paid by the bank ₹ 6,200, was recorded twice in the Pass Book.
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