Accounting · Bank Reconciliation Statement

Assertion: A Bank Reconciliation Statement (BRS) is prepared to identify the causes of the difference between the balance shown in the bank column of the cash book and the balance shown in the bank passbook or statement on a particular date. Reason: If a bank collects interest on government securities on behalf of a customer and credits it directly to the customer's account, the balance in the passbook will be higher than the balance in the cash book until the customer makes a corresponding entry.