BRS (Bank Reconciliation in Tally)

Bank Reconciliation Meaning

It means matching transactions in Bank Statement with Balance of Bank Account as per Tally and Reporting differences if any

Why is BRS needed

In Companies, normally there is daily accounting of cheque given to someone or cheque received from someone.

However, it may happen that it may take some days to clear in Bank Account.

Hence Balance as per Tally may not match with Balance as per Bank Statement

Hence, Bank Reconciliation is prepared weekly or monthly to match Balances of Tally or Bank Statement and find out the differences if any.

Procedure for BRS

1. Download Bank Statement for a week or month.
2. Find Balance of Bank Account in our Books
3. Find Differences if any between the two

These Differences are of 2 types

• Entries in Bank Statement not in Tally
• Entries in Tally not in Bank Statement

Entries in Bank Statement not in Tally

Examples of such entries are

• Bank Charges
• Interest Income
• Direct Deposit by Customer in Bank Account etc

These entries should be actually passed in Tally else Profit and loss and Balance Sheet will be incorrect

(For example-If bank charges are not shown in expense side of P&L,then P&L would be inaccurate)

Entries in Tally not in Bank Statement

Examples of such entries are

• Cheque Issued to Creditor, not yet Presented by him
• Cheque received from Customer, not yet cleared in Bank

These are shown pending in Bank Reconciliation

(In Tally, we open Bank Account and do F5 Reconcile. It asks for Bank Date(We put dates as per Bank Statement) For those which are not appearing in Bank Statement, we leave blank

On Enter Enter or Ctrl A,it shows Bank Reconciliation)

We can take printout or Export in Excel

BRS ASSIGNMENT

BALANCE SHEET AS ON 1 April 2016

2 April
New Current bank account opened in HSBC Bank Rs 10000 account opening cheque given by director Sanjeev Oberoi from his Savings account
4 April
Rs 75000 cash deposited
7 April
Amt withdrawn through ATM Rs 10000
10 April
Cheque recd from AK Traders Rs 40000
11 April
Cheque from AK Traders deposited in Bank

12 April

MTNL paid online through Net Banking Rs 3000
19 April
NEFT Made to STAR EXPORTS Rs 20000 in full settlement
22 April
Shopping done by director Sanjeev using company debit card,a mobile phone purchased for office worth Rs 11000 and watch for his girlfriend Rs 4000
28 April
Cheque issued to DK & Co towards repayment of loan Rs 40000
29 April
Cheque recd from Zarin Impex Rs 5000 deposited in bank same day

ENTRIES TO BE PASSED IN MAY
14 May
AK Traders deposited Rs 10000 cash in our Bank Account
18 May
Cheque received from Ravi & Co Rs 7000 deposited in bank same day
25 May
Advance tax paid by Net Banking Rs 35000
29 May
New Bank Account opened in HSBC Bank,Amt transferred from Current Account No 120202 to New Current Account no 132321 Rs 10000

HSBC BANK STATEMENT

FROM 1 APRIL TO 30 APRIL 2016

HSBC BANK STATEMENT

FROM 1 MAY TO 31 MAY 2015