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Bank Reconciliation Statement (BRS) is not optional—it’s a vital tool for tracking cheques, matching books with bank statements, and avoiding audit or financial surprises. Learn Excel-based and Tally-supported BRS formats used by professionals.
📑 Table of Contents
📑 Table of Contents
- What is Bank Reconciliation Statement?
- Why BRS is a Good System?
- Sample Bank Reconciliation Format
- But Most Accountants Don’t Maintain It Properly…
- Excel Format – Easy Alternative
- Who Should Maintain BRS?
- How Often Should You Reconcile?
- How to Reconcile Bank Statement in Tally
- FAQs
- Read Previous Article
- Final Thoughts
🏦 What is Bank Reconciliation Statement?
A Bank Reconciliation Statement (BRS) is a helpful tool to match your business records with the bank’s actual transaction report. It helps confirm whether all cheques you’ve issued or deposited are properly reflected in the bank statement.
Even if your accounting system is accurate, delays in cheque clearance or auto-debits by the bank can cause a mismatch. Reconciliation bridges this gap — ensuring your balances are fully correct and explainable.
If you're searching for a clear bank reconciliation statement example, this article explains it in simple language with a real format.
💡 Why BRS is a Good System?
- Tracks which cheques are issued but not yet cleared
- Confirms customer payments have actually reached the bank
- Shows pending items or duplicate entries
- Helps avoid mismatch or audit issues
- Gives peace of mind when applying for loans or facing scrutiny
📘 Sample Bank Reconciliation Format
Let’s say your internal bank balance is ₹1,20,000, but the actual bank statement shows ₹1,14,500.
Here’s how you reconcile it using a bank reconciliation statement format Excel method:
| Particulars | Amount (₹) |
|---|---|
| Balance as per records | 1,20,000 |
| Add: Cheques issued but not yet cleared | 7,000 |
| Less: Cheques deposited but not yet credited by bank | 12,500 |
| Balance as per Bank Statement | 1,14,500 |
📝 These types of outstanding cheques and deposits in transit are the main reasons for mismatch.
⚠️ But Most Accountants Don’t Maintain It Properly…
Today, I casually asked a few accountants —
“Arey, Tally automatic karate!”
“Junna accountant correct maintain kelal nahi mahnun mi te tevat nahi…”
So they directly enter balances as per bank statement — without tracking cheque status. This is dangerous because:
- Pending or bounced cheques won’t be tracked
- Customer payments may show “received” when they’re not cleared
- No trail for auditors, bankers, or yourself later
🛠️ What If You Can’t Do It in Tally? Start With Excel!
If you're unable to maintain BRS in Tally, simply start using Excel.
I follow this excel bank reconciliation tracker India method. Here's the format:
| Date | Voucher No | Party Name | Cheque No | Given/Received | Amount (₹) | Clearance Date | Remarks |
|---|---|---|---|---|---|---|---|
| 01-Jun-25 | P-00123 | XYZ Suppliers | 458972 | Given | 25,000 | 03-Jun-25 | Cleared after 2 days |
| 02-Jun-25 | R-00987 | ABC Traders | 478654 | Received | 32,500 | 06-Jun-25 | Deposited cheque |
| 05-Jun-25 | P-00124 | TDS Dept. | NEFT | Given | 10,000 | 05-Jun-25 | UTR: 123456ABCD |
| 06-Jun-25 | R-00988 | DEF Client | 457821 | Received | 18,000 | Pending clearance |
🧑💼 Who Should Maintain BRS?
- Businesses using current accounts
- Retailers and traders handling post-dated cheques
- Freelancers, NGOs, consultants, and professionals
🗓️ How Often Should You Reconcile?
| Type of Business | Suggested Frequency |
|---|---|
| Retail/Service SME | Monthly |
| Exporters / E-commerce | Weekly |
| Large companies | Daily or Weekly |
| Freelancers | Monthly |
🧲 How to Reconcile Bank Statement in Tally
- Enable Reconciliation in F11 features
- Pass cheque entries with proper dates and details
- Navigate to: Gateway of Tally → Display More Reports → Bank Book → Press F5 (Reconcile)
- Enter clearance dates from actual bank statement
- Tally will auto-show the adjusted balance
❓ Frequently Asked Questions (FAQ)
- What is the purpose of a bank reconciliation statement?
To explain any mismatch between bank balance and your accounting records. - How often should I do BRS?
Monthly for most, weekly for high-volume businesses. - Can I use Excel instead of Tally?
Yes, we’ve provided a usable format in this article. - What causes BRS mismatch?
Uncleared cheques, bank charges, or entry mistakes. - Is BRS needed during audits or loan approval?
Yes, it's a key compliance and credibility tool.
📚 Read Previous Article
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✍️ Final Thoughts
Bank reconciliation is not a boring task—it’s an essential part of financial hygiene. Maintain it monthly, either through Excel or Tally. Your future self (and your CA) will thank you.
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