SimonMash.com | Kerala Plus One & Plus Two Study Notes, Question Papers, Answer Keys, Resources

MEANING & NEED FOR BRS Definition: Statement prepared by customer to explain reasons for difference between Cash Book (bank column) balance and Pass Book (Bank Statement) balance on a given date. Need/Objectives: Identify causes of difference, know correct bank balance, detect errors/frauds, prevent unnecessary overdraft, verify bank's records. CAUSES OF DIFFERENCE A. Timing Differences: Cheques issued but not presented (CB lower). Cheques deposited but not credited (CB higher). Interest/dividend collected by bank (PB higher). Bank charges/interest on overdraft (PB lower). Direct deposit by customer (PB higher). Direct payment by bank (insurance, etc.) (PB lower). Dishonour of cheque/bill (PB lower). B. Errors: In cash book (wrong totalling, omission, double entry) or passbook (rare). PREPARATION RULES When Starting from Cash Book (Favourable) Add (+) Deduct (–) Cheques issued not presented, Interest credited, Direct deposit, Dividend collected Cheques depo...

SPECIAL PURPOSE BOOKS (SUBSIDIARY BOOKS) Meaning: Journals divided for specific transaction types when volume is large. List: Cash Book, Purchases Book, Purchases Return Book, Sales Book, Sales Return Book, Bills Receivable Book, Bills Payable Book, Journal Proper. Advantages: Division of labour, specialisation, quick information, easy error detection, time-saving (posting from totals). CASH BOOK Single Column: Records only cash transactions. Always shows debit balance (cash in hand). Double Column (Bank): Records cash & bank. Two columns each side. Contra Entry (C) affects both cash & bank (cash deposited/withdrawn). Petty Cash Book (Imprest System): Fixed imprest amount given; reimbursed exact spent at period end. Records small payments (postage, stationery). Dishonour of Cheque: Reverse entry – Dr. Customer A/c, Cr. Bank. PURCHASES BOOK & PURCHASES RETURN BOOK Purchases Book: Records credit purchases of goods (for resale). Source: Invoice. Net amount a...