Uncollected cheques r those we have received but not eneterd in PB its like cheque deposited but not cleared so it will be on receipt side n we will minusfrom BRS

Explanation:

Introduction:
In the process of bank reconciliation, the cash book balance is compared with the bank statement balance to identify any discrepancies. Uncollected cheques are one such discrepancy that needs to be adjusted in the bank reconciliation statement.

Bank Reconciliation Statement:
A bank reconciliation statement is a statement that reconciles the balance as per the cash book (book balance) with the balance as per the bank statement (bank balance). It helps in identifying the reasons for the difference between the two balances and ensures that the correct balance is reflected in the books of accounts.

Uncollected Cheques:
Uncollected cheques are the cheques issued by a company that have been recorded in the cash book but have not yet been presented to the bank for payment. These cheques are considered as outstanding or uncollected until they are presented and cleared by the bank.

Treatment of Uncollected Cheques:
When preparing the bank reconciliation statement, uncollected cheques are subtracted from the balance as per the cash book. This is done because the amount of these cheques has already been recorded in the cash book as an outflow of cash, but it has not yet been reflected in the bank statement as a decrease in the bank balance.

Reason for Subtracting:
The reason for subtracting uncollected cheques is to adjust the cash book balance and bring it in line with the bank statement balance. By subtracting the uncollected cheques, we are reducing the cash book balance to account for the cheques that have not yet been presented to the bank for payment.

Example:
Let's say the balance as per the cash book is $10,000 and there are uncollected cheques amounting to $2,000. In this case, the bank reconciliation statement will subtract the uncollected cheques ($2,000) from the cash book balance ($10,000) to arrive at the adjusted cash book balance of $8,000.

Conclusion:
In conclusion, uncollected cheques are subtracted in the bank reconciliation statement to adjust the cash book balance and bring it in line with the bank statement balance. This adjustment is necessary because the uncollected cheques have already been recorded in the cash book as an outflow of cash, but they have not yet been reflected in the bank statement as a decrease in the bank balance.