Do u know wwhat is meant by BRS???

by barkkathulla 2012-09-20 17:07:26

<font color=#000033>BANK RECONCILIATION STATEMENT</font>

RECONCILING THE COMPANY'S BANK ACCOUNTS WITH THE BANKER'S STATEMENT IS A FUNDAMENTAL AND REGULAR TASK OF ACCOUNTING. OUR FIRST PRESENTATION OF THIS FACILITY AIMS TO TACKLE TWO ISSUES.
FIRST, THERE SHOULD BE THE ABILITY TO 'CHECK BACK' THE CORRECTNESS OF THE RECONCILIATION. THIS HAS BEEN DONE, BY MARKING THE 'BANK DATE' AGAINST THE VOUCHER. FOR INSTANCE, IF YOU HAVE ISSUED A CHEQUE ON 8TH APRIL, WHICH WAS ULTIMATELY CLEARED BY YOUR BANK ON 19TH APRIL, - YOU WOULD SET THE 'BANK DATE' FOR THE VOUCHER TO BE 19TH APRIL. THIS MEANS, THAT WHEN YOU NEXT NEED TO 'CHECK BACK' WHETHER THE ENTRY MADE BY YOU IS CORRECT, YOU WILL ONLY NEED TO VERIFY THE BANK STATEMENT OF THE 19TH.
SECOND, THAT YOU SHOULD BE ABLE TO 'RECOVER' THE RECONCILIATION AS OF ANY DATE. THIS IS OF CRUCIAL IMPORTANCE TO AUDITING. THE BANK RECONCILIATION IS ONE OF THE PRE-REQUISITES OF AUDITING AND VERIFICATION OF THE CORRECTNESS OF ACCOUNTS AT THE YEAR END. HOWEVER, IT IS NOT A 'REAL-TIME' TASK â IN THE SENSE, THAT IT IS NOT DONE BY THE AUDITOR'S ON THE FIRST DAY OF THE NEXT YEAR. THIS MEANS, THAT THE RECONCILIATION MADE ON 31ST MAR, SHOULD BE 'VIEWABLE' EVEN IN AUGUST, - BY WHEN ALMOST ALL THE CHEQUES WOULD HAVE SUBSEQUENTLY BEEN MARKED AS RECONCILED. THIS HAS AGAIN BEEN ACHIEVED USING THE CONCEPT ABOVE.
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