BRS - Bank Reconciliation Statement
A bank reconciliation statement is a statement prepared by organizations to reconcile the balance of cash at bank in a company's own records with the bank statement on a particular date.
The differences may arise because of the following reasons:
- Cheques deposited into bank but not yet collected by bank
- Cheques issued by the organization but not yet presented for payment
- Cheques directly deposited by customers into the bank
- Bank charges debited by bank
- Interest credited or some receipts directly collected by bank based on org. request.
- Some payments directly made by bank based on the organizations request.
So, the statement shows the reasons as what are the reasons for difference in balance.