JAIIB AFB 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
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