How to treat the following transactions in BRS{plus-minus method}
favourable balance as per CB
- The receipt coloum of cash book undercasted by rs200
- bank charges entered twice in CB
Dear Student,
For the First situation wherein Receipt column in under casted by Rs 200, that means Receipt column didn't recorded Rs 200 & so when BRS is prepared considering balance as per Cash Book it would be added as the same amount would have already been added in our Pass Book.
For the second situation "Bank charges have been entered twice in Cash Book" , since amount has been deducted twice so the amount of Bank charges would be added back, to nullify the impact of double deduction and to match up with the Pass Book Balance.
Regards,
| Bank Reconciliation Statement as on.. | |||
| S. No. | Particulars | Plus Items (Rs) | Minus Items (Rs) |
| Favourable balance as per the Cash Book | XXX | ||
| (1) | Add: The receipt column of cash book under casted by Rs 200 | 200 | |
| (2) | Add: Bank charges entered twice in CB | XXX | |
| Balance as per Pass Book | XXX | ||
For the First situation wherein Receipt column in under casted by Rs 200, that means Receipt column didn't recorded Rs 200 & so when BRS is prepared considering balance as per Cash Book it would be added as the same amount would have already been added in our Pass Book.
For the second situation "Bank charges have been entered twice in Cash Book" , since amount has been deducted twice so the amount of Bank charges would be added back, to nullify the impact of double deduction and to match up with the Pass Book Balance.
Regards,