Bank Reconciliation Statement (BRS)
Definition
A statement reconciling the balance in a business's cash book with the balance on its bank statement, explaining differences such as unpresented cheques, deposits in transit and bank charges.
Related Terms in Core Accounting
Closing Stock
The value of unsold inventory at the end of an accounting period. It reduces the cost of goods sold for the period and is carried forward as the opening stock of the next.
Opening Stock
The value of inventory a business holds at the start of an accounting period, carried over from the prior period's closing stock. It is added into the cost of goods sold calculation.
Sales Return
Goods returned by a customer after a sale, reducing recorded revenue and, where tax applies, adjusting the tax charged — often through a credit note. Also called returns inward.
Purchase Return
Goods a business returns to a supplier after purchase, reducing recorded purchases and the amount owed — often via a debit note. Also called returns outward.
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