CPT Chapter Bank Reconciliation Statement

CA CPT chapter “Bank Reconciliation Statement” explains the reasons for the difference in the bank balance as shown in the organization’s books of account and that shown in the books of the bank. It explains how these differences are reconciled systematically through a Bank Reconciliation Statement.

With Sheela Warrier.Duration:1hrs 54min

Bank Reconciliation Statement Duration (min:sec)
Bank Transaction flow  
{modal https://www.youtube.com/embed/0hWzJk8rJg0?autoplay=1;rel=0|width=780|height=439|title=Introduction}Introduction{/modal} 01:36
{modal https://www.youtube.com/embed/vgtOEA8TQbs?autoplay=1;rel=0|width=780|height=439|title=Types of Bank account}Types of Bank account{/modal} 03:55
{modal https://www.youtube.com/embed/3D1-hUmWpGs?autoplay=1;rel=0|width=780|height=439|title=How Cheques are issued}How Cheques are issued{/modal} 06:02
{modal https://www.youtube.com/embed/VBHF8wNSZNs?autoplay=1;rel=0|width=780|height=439|title=Clearing Process}Clearing Process{/modal} 04:23
{modal https://www.youtube.com/embed/8JvuH-qs444?autoplay=1;rel=0|width=780|height=439|title=Why Timing Difference}Why Timing Difference{/modal} 03:23
{modal https://www.youtube.com/embed/FB62L7X8W6A?autoplay=1;rel=0|width=780|height=439|title=Bank Transaction communication}Bank Transaction communication{/modal} 04:48
{modal https://www.youtube.com/embed/Vr7H_s-OlxU?autoplay=1;rel=0|width=780|height=439|title=Cash Book Vs. Pass Book}Cash Book Vs. Pass Book{/modal} 03:32
{modal https://www.youtube.com/embed/31_jbqxr3VQ?autoplay=1;rel=0|width=780|height=439|title=Terminology}Terminology{/modal} 06:22
{modal https://www.youtube.com/embed/9t_Gk7zDfMk?autoplay=1;rel=0|width=780|height=439|title=Quiz 1}Quiz 1{/modal} 05:47
Why BRS?  
{modal https://www.youtube.com/embed/9Nm1pBvhrKE?autoplay=1;rel=0|width=780|height=439|title=Why BRS}Why BRS{/modal} 08:14
{modal https://www.youtube.com/embed/sF3TaIGCoRw?autoplay=1;rel=0|width=780|height=439|title=Quiz 2}Quiz 2{/modal} 03:48
How to prepare BRS?  
{modal https://www.youtube.com/embed/gZtB7eM-p10?autoplay=1;rel=0|width=780|height=439|title=Reason for Differences}Reason for Differences{/modal} 12:07
{modal https://www.youtube.com/embed/8tygwEDsaQU?autoplay=1;rel=0|width=780|height=439|title=Format of BRS}Format of BRS{/modal} 04:41
{modal https://www.youtube.com/embed/Vu2TVCzXHNc?autoplay=1;rel=0|width=780|height=439|title=Overdraft}Overdraft{/modal} 19:36
{modal https://www.youtube.com/embed/B6VOQn3vsdo?autoplay=1;rel=0|width=780|height=439|title=Increase /Decrease}Increase /Decrease{/modal} 05:31
{modal https://www.youtube.com/embed/F-NSEhQYNOo?autoplay=1;rel=0|width=780|height=439|title=Adjusted Cash Book}Adjusted Cash Book{/modal} 07:48
{modal https://www.youtube.com/embed/R1iMa3F7s6g?autoplay=1;rel=0|width=780|height=439|title=Quiz 3}Quiz 3{/modal} 10:41
{modal https://www.youtube.com/embed/6FrU6BU0Png?autoplay=1;rel=0|width=780|height=439|title=Conclusion}Conclusion{/modal} 02:16
Total 1:54:30

Notes

Few things covered by us

What you should know

Basic Accounting Concepts
Asset
Liability
Journal Entries
Cash Book

Bank Reconciliation Statement (BRS)

BRS is
a statement prepared by the account holder identifying causes of difference between the bank balance as shown in Cashbook and that shown in the Pass Book on a particular date

Importance of BRS

Locate Errors
Locate undue delay in clearing of cheques
Prevent fraud
Arrive at the correct bank balance

Reasons for Difference

Timing Difference
Cheques paid into the bank but not cleared
Cheques issued but not presented for payment
Interest allowed by bank
Interest and expenses charged by the bank
Interest and dividends collected by the bank
Direct payments by the bank
Direct payment into the bank by a customer
Dishonour of a bill discounted with the bank
Bills collected by the bank on behalf of the customer
Errors in Recording

Overdraft Balance

Withdrawals increase overdraft balance
Deposits decrease overdraft balance

Few Problem examples are below-

The Bank informs its customers of the entries made in the customers’ account through :
(a) Cash Book
(b) Pass Book
(c) Bank Reconciliation Statement
(d) None of these

A Bank Reconciliation Statement is prepared by
(a) The Bank
(b) The Government
(c) The Bank Account holder
(d) The user of financial statements

A Bank Reconciliation Statement is a
(a) Part of Cash Book;
(b)Part of Bank Account;
(c) Part of financial statements,
(d)None of these

When overdraft as per Cash book is the starting point, a cheque of Rs. 500 deposited into bank but not recorded in cash book will be :
(a) Added by Rs. 500
(b)Deducted by Rs. 500
(c) Added by Rs. 1,000
(d)Deducted by Rs. 1,000


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