Explanation of BRS (Bank Reconciliation Statement) for a bill of Rs 6900 discounted with the bank but entered in the cash book without recording the discount charge of Rs 800:

BRS Overview:
Bank Reconciliation Statement (BRS) is a statement that compares the bank balance shown in the cash book with the bank balance shown in the bank statement. It is prepared to identify any discrepancies between the two balances and to make the necessary adjustments.

Scenario:
In this scenario, a bill of Rs 6900 has been discounted with the bank, but the cash book has not recorded the discount charge of Rs 800. This means that the cash book balance will be higher than the bank balance.

Steps to prepare the BRS:
To prepare the BRS, the following steps should be followed:

1. Compare the cash book balance with the bank statement balance.
2. Identify any discrepancies between the two balances.
3. Make the necessary adjustments to reconcile the balances.

Adjustment for the given scenario:
In this scenario, the adjustment required is to reduce the cash book balance by the discount charge of Rs 800. This is because the discount charge has not been recorded in the cash book, which means that the cash book balance is overstated.

Final reconciliation:
After making the necessary adjustment, the cash book balance will be reconciled with the bank statement balance. The final reconciliation will show that the cash book balance has been reduced by Rs 800 to account for the discount charge.

Conclusion:
In conclusion, the BRS is an important tool for identifying discrepancies between the cash book and bank statement balances. In this scenario, the discount charge of Rs 800 was not recorded in the cash book, which required an adjustment to reconcile the balances. By preparing the BRS, the correct cash book balance can be determined, and any discrepancies can be identified and resolved.