Question

BRS as on 31 Dec 2013
Cheques deposited for Rs.5500 but cheques for 5000 were collected on 31.12.2013

Answer 1

Hey Aahana

BRS is prepared on 31.12.2013.

Cheques deposited = Rs 5,500
Therefore, Cash Book balance will increase by Rs 5,500

Cheques actually credited by bank = Rs 5,000 till the date of preparation of BRS
Therefore, Pass Book balance will increase only by Rs 5,000

That means, Cash Book balance > Pass Book balance. Right?

In order to reconcile both the books,

Rs 500 (the difference amount) will be subtracted - When Cash Book balance is the starting balance
Rs 500 (the difference amount) will be added - When Pass Book balance is the starting balance

Hope this clarifies your doubt!!