Bank Reconciliation Statement (BRS) - Overdraft as per Cash Book is the Starting Point

Introduction:
In bank reconciliation, the process of matching the balances of the cash book with the bank statement is carried out. It helps in identifying any discrepancies or differences between the two records. When the overdraft as per the cash book is the starting point, certain adjustments need to be made in the Bank Reconciliation Statement (BRS) to reconcile the balances.

Steps to Prepare BRS:

1. Check Opening Balances:
- Verify the opening balance of the cash book and the bank statement.
- Ensure that the overdraft balance as per the cash book matches the bank statement.

2. Identify Unpresented Cheques:
- Compare the cheques issued but not yet presented for payment.
- Add the total amount of these unpresented cheques to the cash book balance.

3. Identify Outstanding Deposits:
- Identify any deposits made but not yet credited to the bank account.
- Deduct the total amount of these outstanding deposits from the cash book balance.

4. Reconcile Bank Charges:
- Identify any bank charges or fees debited by the bank.
- If a bank charge is debited twice in the passbook, deduct the duplicate amount from the cash book balance.

5. Reconcile Uncredited Cheques:
- Identify any cheques received but not yet credited by the bank.
- Deduct the total amount of these uncredited cheques from the cash book balance.

6. Reconcile Direct Credits and Debits:
- Identify any direct credits or debits recorded in the bank statement but not in the cash book.
- Adjust the cash book balance accordingly.

7. Calculate Adjusted Cash Book Balance:
- Add or deduct the adjustments made in steps 2 to 6 from the opening balance of the cash book.
- This will give the adjusted cash book balance.

8. Compare Adjusted Cash Book Balance with Bank Statement Balance:
- Compare the adjusted cash book balance with the closing balance in the bank statement.
- If they match, the reconciliation is complete.
- If they do not match, further investigation is required to identify the cause of the difference.

Conclusion:
By following the above steps, the Bank Reconciliation Statement (BRS) can be prepared when the overdraft as per cash book is the starting point. This process helps in identifying and rectifying any discrepancies between the cash book and the bank statement, thus ensuring accurate financial record-keeping.