Bank Reconciliation Statement format include the following points

1)     BRS having heading as “Bank Reconciliation Statement as on _________” (date)

2)     Balance as per book of accounts maintained the Company needs to record.(A)

3)     All addition entries are grouped together in the inner column and total to the outer column for the purpose of addition.(B)

4)     All deducting entries are grouped together in the inner column and total to the outer column for the purpose of deduction. (C )

5)     Finally we need to arrive at the Balance as per Pass Book. (E)

In above example we have taken the credit balance as per Pass Book. The position will be reversed in case of there is debit balance as per Pass Book.

Now a days many business enterprises using accounting software for bank reconciliation statement. This software decreases the amount of efforts and modifications if necessary. Few business enterprises prepare a Bank Reconciliation statement on daily basis. It is prepared from time to time to check that all the transaction related to banks is properly recorded by the company.


In simple words Bank Reconciliation Statement meaning refers to know why there is difference

between bank account maintained by the business and pass book related to bank account of business. In simple words BRS means summary of banking and business activity of reconciling entries. Company maintained Bank Pass book can have debit and credit balances.  Credit Balance in pass book refers to company having money in the bank account and company maintained account having a debit balance in there books of accounts. If Company maintained Pass Book having debit balance it means Company borrowed money from the bank and company maintained account having credit balance.


Bank Reconciliation Statement is a one kind of very effective tool for detecting errors, frauds, unaccounted entries. There are many reasons for difference


1)     Bank charges debited by the bank but not accounted by the company.

Interest credited by the bank but not accounted by the company.

2)     Cheques issued by the company but not presented to bank for payment.

3)     Cheques presented by the company to the bank but still not cleared.

4)     Deposit of money by some customer directly to company account but not accounted by the company.

5)     Clerical error in accounting of entries.


Bank Reconciliation statement is prepared by the customer of the bank or accountant of a company with the purpose to know the why there is difference in company’s books of records and bank pass book.  Generally Bank Reconciliation Statement done on monthly basis.




1)     1 )  Helps to identify errors made by company accountant.

2)     Helps to identify errors made by the bank.

3)     Reduces the chances of fraud.

4)     Helps to keeping a track of all the transactions.

5)     Customers become sure of correctness of the accounting entries made by them.

6)     Bank Reconciliation Statement helps to know the actual Bank balance.

7)     BRS helps to identifying any undue delay in the collection of cheques.

8)     BRS preparation is not compulsory and there is not any fixed date on which it is to be prepared.




Bank Reconciliation Statement can be prepared when company receives updated Pass Book or Bank Statement form the Bank.  First and foremost step of the person one who wants to prepare BRS must check that the opening balance of Bank Statement and Bank book are matching with the balances as per the last Bank Reconciliation Statement.


The following are the steps for Bank Reconciliation Statement.


1)     Collect the Bank Pass book or Bank Statement related to business for bank records.

2)     Collect the details of ac account maintained by the Company.

3)     Get to know debit balance as per bank account or credit balance as per bank account.

4)     Tally the Debit entries as per account maintained by the company with Credit side entries of the Pass Book and vice versa.

5)     Tick the items appearing in both the books.

6)     Unticked items will be the point of difference.

7)     Pending entries in the last Bank Reconciliation Entries must me checked and make sure that all entries are ticked.

8)     BRS can be prepared by taking balance as per pass book or balance as per account maintained in the books of accounts maintained by the company.

9)     If staring point is Balance as per Pass Book then the ending balance will be Balance as per Book Balance maintained by the company. 




1)     Any debit balance in books of account maintained related to bank account referred as amount deposited by the business.

2)     Credit balance in Pass Book is equal to Debit balance in books of accounts maintained by the company.

3)     Debit balance in books of accounts means favorable balance.

4)     Bank Reconciliation Statement can be prepared at any time when all transaction details related to bank pass book and account maintained book available.




Dear readers in this article you will get to know about Bank Reconciliation Statement format, meaning, need and purpose of preparing, steps and rules for preparing BRS etc. Basis of BRS difference is because of difference due to timing, difference is due to bank recording of transactions, difference due to errors or omissions. Hope you got all information. If any questions kindly comment below.  

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