Accounts Receivable Clerk Interview Question:

What Is Brs?

Submitted by: Muhammad

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.
Submitted by: Muhammad