JAIIB - AFB - MODULE - B - Unit - 9 : Bank Reconciliation statement
Bank Reconciliation statement Bank reconciliation( B. R. ) is based on the principle of double entry. Credit the giver and debit the receiver B. R. Shows causes of differences between cash book and pass book balance Debit balance as per cash book is credit balance as per pass book = positive balance Credit balance in cash book is debit balance in pass book = negative balance/overdraft .
Causes of differences Cheque issued but not presented for payment Cheque deposited but not yet realized Bank charges Interest on saving bank Int. on overdraft Amount directly collected by bank Amount directly paid by bank on Std. Instructions Dishonor of a Cheque Direct payment into bank by customer errors