What is a Pass Book?

What is Bank Reconciliation Statement (BRS)?

A statement showing all the items of difference between the bank column of the Cash Book and the bank balance depicted in the Pass Book on a particular date and for a particular period of time is called Bank Reconciliation Statement. It is a statement prepared on a particular date to reconcile the bank balance of the Cash Book with the balance as per the Pass Book or vice-a-versa....

What is a Pass Book?

A Pass Book is provided by the bank when a new account is opened to have a record of all the transactions related to the bank. The Pass Book is maintained by the bank. On the other hand, to have a check on all the transactions related to the bank, the businessman maintains a Cash Book. Cash Book is prepared by the businessman to record all the transactions related to the bank account....

Why Bank Reconciliation Statement (BRS) is Prepared?

When any transaction related to the bank happens, say, cash is deposited in the bank. The businessman records this transaction in the bank column of the Debit side of the Cash Book and the Bank records the same on the Credit side of the Pass Book. Similarly, when cash is withdrawn from the bank, it is recorded in the bank column of the Credit side of the Cash Book by the businessman and the Debit side of the Pass Book. Therefore, the opposite side of the Cash Book and Pass Book should always tally, i.e., the Debit side of the bank column of the Cash Book should always tally with the Credit side of the Pass Book and vice-versa. If this does not happen and some difference is found between the opposite sides of the Cash Book and Pass Book, then it means that there is some error or mistake....