What is BRS? In 1 Minute!
Imagine your phone shows ₹10,000 (Cash Book), but your bank app shows ₹9,000 (Pass Book).
BRS is your detective tool to find “why?” and fix the gap!
✅ Simple Definition:
BRS = Cash Book Balance + Adjustments = Pass Book Balance
Why Do Differences Happen?
(Real Student Examples)
| Scenario | Cash Book | Pass Book |
|---|---|---|
| You wrote a cheque (not cashed) | Less ₹ now? ❌ | Still shows full ₹ ✅ |
| Bank charged fees (you forgot) | No record ❌ | Less ₹ ✅ |
| Interest added by bank | No record ❌ | More ₹ ✅ |
Key Terms:
- Outstanding Cheque: Cheque you gave but receiver hasn’t deposited.
- Deposit in Transit: Cash you deposited but bank hasn’t cleared.
BRS Format (Cheat Sheet!)
Start with your Cash Book balance, then adjust:
| Particulars | Amount (₹) |
|---|---|
| Balance as per Cash Book | 50,000 |
| ADD: | |
| • Deposits not in pass book | +5,000 |
| • Interest from bank | +1,000 |
| LESS: | |
| • Cheques not cleared | -8,000 |
| • Bank charges | -500 |
| = Adjusted Balance | 47,500 |
| Balance as per Pass Book | 47,500 |
🎯 Goal: Make both sides equal!
Solved Example (Step-by-Step)
Rohan’s Problem (Jan 2025):
- Cash Book: ₹25,000
- Pass Book: ₹21,500
- Outstanding cheque: ₹6,000
- Deposit in transit: ₹3,000
- Bank charges (unrecorded): ₹500
Solution:
- Start with Cash Book: ₹25,000
- LESS Outstanding cheque: -₹6,000 (you reduced cash, but bank didn’t)
- ADD Deposit in transit: +₹3,000 (you added cash, but bank didn’t)
- LESS Bank charges: -₹500 (bank reduced it, you forgot)
- Adjusted Balance = ₹21,500
- Matches Pass Book! ✅
5 BRS Rules Every Student Must Know
- Cash Book Balance is STARTING POINT
- ADD: Anything the bank ADDED (interest) or you ADDED (deposit) but bank missed
- SUBTRACT: Anything the bank DEDUCTED (fees) or you DEDUCTED (cheque) but bank missed
- Final Adjusted Balance MUST EQUAL Pass Book balance
- Update your Cash Book after BRS!
💡 Pro Tip: Use highlighters to mark differences in bank statement!
Try This! (Exam-Style Problem)
Cash Book: ₹40,000
Pass Book: ₹43,000
Clues:
- Interest credited by bank: ₹1,000 (not in cash book)
- Cheque issued but not cleared: ₹5,000
- Deposit not recorded by bank: ₹7,000
Solution:
| Particulars | Amount (₹) |
|---|---|
| Balance as per Cash Book | 40,000 |
| Add: Interest | +1,000 |
| Add: Deposit in transit | +7,000 |
| Less: Outstanding cheque | -5,000 |
| Adjusted Balance | 43,000 |
| Balance as per Pass Book | 43,000 |
Why BRS Matters?
- Stops money leaks 💸
- Catches bank errors
- 90% of exams include BRS questions!
- Companies do this EVERY MONTH
Image 3: BRS Workflow
Final Tips for FYBCom Students
- Reconcile monthly – don’t wait for exams!
- Use Tally/Excel for practice.
- Master these adjustments:
- ✅ Add: Deposits in transit, Interest
- ❌ Subtract: Outstanding cheques, Bank fees