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Control Accounts BRS

The document outlines the structure and components of Receivable/Debtor and Payable/Creditor Control accounts, including transactions such as credit sales, cash received, refunds, and discounts. It also discusses the importance of maintaining control accounts for accurate reconciliation and highlights the process of Bank Reconciliation Statements (BRS) to identify discrepancies between cash book and bank statement balances. Key causes for differences include timing differences, unrecorded items, and errors in recording transactions.

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mirzatahrema
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33 views

Control Accounts BRS

The document outlines the structure and components of Receivable/Debtor and Payable/Creditor Control accounts, including transactions such as credit sales, cash received, refunds, and discounts. It also discusses the importance of maintaining control accounts for accurate reconciliation and highlights the process of Bank Reconciliation Statements (BRS) to identify discrepancies between cash book and bank statement balances. Key causes for differences include timing differences, unrecorded items, and errors in recording transactions.

Uploaded by

mirzatahrema
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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Receivable/Debtor/Sale Ledger Control account

Bl b/f xx Bl b/f(overpaid) xxx


Credit sales+VAT (SDB) xxx Sale return+VAT(SRDB)xxx

Dishonoured chqs(CB) xxx Cash/chq received from customers(CB xxx


Refund to customer(CB) xxx Irrecoverable debts (Journal) xxx
Interest charged from customers
(Journal) xxx Discount Allowed xxx

Contra/Set off with Payables (Journal) xxx


Bl c/f(overpaid) xxx Bl c/f xxx
XXXX XXX
Bl b/f xxx Bl b/f(overpaid) xxx

Payable/Creditor/Purchase Ledger Control account


Bl b/f(overpaid) xxx Bl b/f xxx
Purchase Return+VAT (PRDB) xxx Credit purchase+VAT(PBD) xxx

Cash/chq paid to suppliers(CB) xxx Refund from Supplier (CB) xxx


Discount received(CB) xxx

Contra with Receivable (Journal) xxx Interest charged by supplier (Journal) xxx
Bl c/f xx Bl c/f(Overpaid) xx
XXXX XXXX
Bl b/f(overpaid) xx Bl b/f xx
Transactions

BOPE/Day books
Trial Balance
totals of day books Ledgers

General/Nominal Ledgers

All T accounts
including Control accounts
1 RLCA/DLCA/SLCA =
2 PLCA/PLCA/CLCA =

Control account
1 Casting errors in day books
overcast= opposite side
Undercast= same side

2 2

3 Error/omission of Recording t 3

If transaction recorded in a wrong customer/supplier a/c will have no Effect on Reconciliation


from the individual transactions Memorandum Accounts If control account are maintaine

Personal/Individual Ledgers

DLA/RLA/SLA(all credit customers) PLA/PLA/CLA(all credit suppliers)

List of Debtors(total)
List of Creditors(total)

Persoanl account

Error in Listing of blances


Dr bl recorded as Cr= double
Cr bl recorded as Dr= Double
Balance omitted= record

Error/omission of Recording transactions in Day books

tomer/supplier a/c will have no Effect on Reconciliation


If control account are maintained then personal account are not part of Double entry
BRS
It is a statement which shows the causes for the differences in business cash book balance & bank statement balan

Causes for the differences


1 Timing Differences
These transaction are recorded in cash book but not yet in bank statement
a) Unpresented /Outstanding chqs chq drawn/issued to suppliers but not yet paid by bank
b) uncredited chqs/outstanding Lodgement/Deposits in Transit Chq received from customer

2 Unrecorded Items
These transaction are recorded in Bank statement but not in cash book
e.g Bank charges, Direct Debits, Standing orders, Interest on Overdraft, Dishonoured chqs, Direct

3 errors
in Cash book
by Bank in bank statement

Cash book(bank account)


Bl b/d xxx Bl b/d(overdraft) xxx bank statement(pass book) b
Receipts xxx Payments xxx Add Uncrdited lodgements
Direct Credits xxx Bank charges xxx Less unpresented chqs
Bank collections xxx direct debits xxx Bank errors
Credit Transfer xxx Standing orders xxx Less wrongly include/Credited
Investment incomes xxx Interest on Overdraft xxx Add Wrongly charged/Debited
Interest & Dividend Received Dishonoured chqs xxx Adjusted/correct Cash book ba
CB errors xxx CB errors xxx
Bl c/d(overdraft) ? Bl c/d ?
XXX XXX
Bl b/d xxx Bl b/d(overdraft) xxx
Adjusted/correct Cash book balance
ance & bank statement balance.

but not yet paid by bank


Chq received from customer byt not yet paid by bank

raft, Dishonoured chqs, Direct Credits(receipts) etc

BRS Cr(Dr)
bank statement(pass book) balance XXX(XXX)
Uncrdited lodgements xxx
unpresented chqs (xxx)
Bank errors
wrongly include/Credited (xxx)
Wrongly charged/Debited xxx
djusted/correct Cash book balance XXX(XXX) Dr(Cr)

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