Hello everyone and welcome back to another spicy lecture
related to the topic bank reconciliation statement.
We have talked a lot about BRS in the previous class, we
will continue the discussion in this class.
See friends, what did we learn in the last class?
Sir, we talked a lot, we saw the meaning of BRS, how are
debits and credits, we saw that in the cash book and
passbook, who makes the cash book, who makes the passbook,
we also saw a reason for difference, we found out that the
balance of the cash book and passbook should be of equal
and opposite nature after every transaction, the amount
should be equal, the nature should be opposite.
At one place there is a debit, at another place there is a
credit, at one place there is a debit, at another place
there is a credit, but due to some reasons, the balance of
the cash book and passbook does not match with each other.
In order to correct these reasons, in order to match the
balance, the statement that is made separately, its name is
BRS.
And what are the reasons, sir, because of which the balance
does not match?
We learned one reason with you, cheques issued but not
presented for payment.
We had a creator, someone's loan was hanging on our head,
he came to us, he said, bring a cheque, we gave him a
cheque, issued it, that Vijay, take money from our account,
and as soon as we issued the cheque, we deduct the amount
from our cash book, you saw, we pass the entry in
teleprime, we credit the bank in the payment voucher, that
brother, money is going to be deducted from our account, we
do not wait for clearance, that there will be clearance
from the bank, there will be news, there
be a letter, there will be a letter, no message, no
message, where did you go, then we will enter, nothing like
that, we enter on the same day, but the creditor has a
wedding at home, he has not gone to his bank with that
cheque, he goes to his bank, he has not gone there with the
creditor, so the creditor has not come to our HDFC, it has
not been cleared yet, money has not been deducted from our
account, so the entry in the passbook has not been done, so
the entry in the passbook has not been
but the cash book is minus, so what difference will it
make, tell me, sir, the balance of the cash book will fall
down, the balance of the cash book will look up, absolutely
right, absolutely right, this is what we saw in the
previous class, now we will increase the discussion, cheque
deposited in the bank but not cleared, let's understand
this, what is the name of this, cheque deposited in the
bank but not cleared, my feet do not touch the ground, this
is how it is, sir, you started singing
and the pad started moving, it stopped, now I will not sing
songs again, my bad luck, cheque deposited in the bank but
not cleared, see friends, it is very important to
understand this, if on these lines, on their meaning, the
topic that is going on in front of you, if you put 10
minutes, then you will be relaxed for the rest of your
life, and you will not invest for 10 minutes, and you want
to know the direct treatment, then you will be worried for
the rest of your life, so I am saying that
is a very good investment, these are the terms that are
confused, these are the things that make BRS difficult, we
have already understood them and are going on very well
conceptually, so which thing will bother us, nothing can
bother us, take this, this is me, and this is a person whom
I have borrowed, what is the name of this, a person, a
person, although you can tell, whom we borrow, what
name do we give to that person, what name do we give to
that person, debtor, very good, we give the name of debtor
to that person, okay, no problem, I sold it to him, I sold
it to him, suppose 40,000 rupees, 40,000 rupees, he said
okay, take this, I will pay you, whether it is a cash sale,
he is giving a cheque along with it, or a while ago we sold
it to him, now he is giving us a cheque, finally, the
important thing is that he is giving us a cheque of 40,000
rupees and saying bye bye, namaste,
account is clear, I bought a cheque of 40,000 from you, I
gave you a cheque of 40,000, namaste, bye bye, we said
okay, why, because we know that the cheque has come, we
will deposit it in our bank and money will come to us, what
is the problem, later sir, if this cheque is not clear, we
will see later what is what is not, now you walk straight
on the road, let the shortcut remain, that a shortcut comes
out of the jungle from here, which is directly available on
the highway, let it be, have you
any movie that the shortcut has been successful till date,
get stuck in the jungle forever, so it is necessary to walk
step by step, okay sir, now where was your account, which
bank was my account in, smart kids, remember and tell, sir,
your account was in HDFC bank, absolutely right, I went to
HDFC bank and I made this cheque deposit, I made this
cheque deposit, as soon as I make the cheque deposit, I
come home
by taking a chance and I add 40,000 rupees to my cash book,
I pass the entry of 40,000 rupees, I do not wait for this
cheque to be cleared or not, it will be cleared, money will
come in the account, they will go to the bank, my work was
to deposit, I deposited and passed the entry of 40,000
rupees, so this is the meaning of cheque deposited in
the bank, this is the meaning for cheque deposited in the
bank, sir, what are the last three words, but not cleared,
didn't I tell you yesterday, when you deposit the cheque
here, then this cheque has been given to you by this
debtor, now these HDFC people will go to the bank, which
bank's cheque has been given by the debtor, which bank has
this debtor's account, from there they will check the
validity and technicality of this cheque and then the money
will be transferred to my account, so it
time, normally it takes 3 days, so let's suppose on 29th of
March, I deposited the cheque and in my cash book
I added how much rupees, 40,000 rupees, I deposited the
cheque and in the cash book
I added 40,000 rupees, okay sir, no problem, but friends,
on 1st April the cheque was cleared somewhere and the bank
people added in my passbook, my HDFC bank people added
40,000 rupees on 1st April, so if we talk about 31st of
March, what is the position, what is the situation on 31st
of March, the cash book has become 40,000 plus, but there
is no entry in the passbook yet, this is the position on
31st of March, so if you say, the cash book is up this time
and the passbook is down, there is a
there is a difference, why there is a difference, because
of the timing, the timing is different, I will make it plus
today, on 29th of March, the day I deposit the cheque, the
bank people wait till the money comes from the front, how
do the bank people deposit the cheque on the day I
deposited the cheque in my account, they will deposit the
money only after it is cleared, that's right sir, so
because of the timing difference, this mismatching comes in
the balance of the cash book and the
let me show you how we pass the entry in the cash book, we
pass the entry in the cash book on the same day, and there
will be no entry in the passbook, see it is the same bank
to debtor entry, bank to debtor entry, which we do in
teleprime, let me show you, let's sell it, then let's
receive its entry, okay, and then let's see how it will
reflect in the cash book, okay, okay sir, let's see, it
will take 2 minutes, what is the problem, the process
should not break, let me flash teleprime once on
screen, wait a bit, okay, it is flashing,
okay, create a company as soon as possible, what should we
name it sir, cheque deposited in the bank but not cleared,
cheque deposited in the bank but not cleared, controlling,
controlling, okay, let's sell this person first, F8,
voucher F8, let's name the debtor first, let's name the
debtor first, let's name the debtor first, let's name the
debtor under sales account.
Let's sell the watch.
It's a sale of 40,000, isn't it? Yes, sir.
There is no GST. 4 pieces for Rs. 10,000.
It will give a warning, telly, no problem, you go ahead.
We don't have to pay attention to the sale, we have to pay
more attention to the received entry.
Now he is giving us a cheque on the 29th.
So what will we do? We will open F6 Received Voucher.
We will credit Tarun.
Tarun's account is being cleared for 40,000.
We will tell Tarun to go ahead.
When we sell Tarun, we debit it and make it our debtor.
When we give him the goods.
Now he is giving us money, so clear his account by
crediting it.
Tell him, okay, thank you, go ahead.
And your bank account will be debited.
HDFC bank account.
Okay, okay, sir.
Now you will escape and come outside the Gateway of Telly.
And here you will press D, A, C.
So you will see that your cash book has a debit of 40,000
in the bank account.
It means that you have made a debit of 40,000 today.
And as soon as you see your passbook, you will have a bank
passbook in your hand.
So you would find that this entry of 40,000 is not visible
in it.
You will sit to match the balance on 31st of March.
31st of March, the last day of the year.
So you would find that I am getting 40,000 rupees plus in
Telly Prime.
But this entry is not visible anywhere in the passbook.
So this is your reason for difference.
We will adjust this in BRF, in Bank Reconciliation.
Okay, okay, sir, okay.
How to do that, we will see later.
Now we are going to know the reason for differences.
We are concerned about reason for differences at the moment.
I am taking you through the entry because you will do Bank
Reconciliation when the entry is done in Telly.
Suppose I will not show you the entry of 40,000 in the bank.
Then you will do Khak Reconciliation.
Why sir, tell me.
Then there is no entry in your cash book and no entry in
the passbook.
The balance is a match.
The entry should be reflected in your cash book.
If it is not reflected in the passbook, then the reason for
difference will be made.
Then what is the need of Bank Reconciliation if you are not
doing it in your cash book.
That is why it is necessary to show the entry in Telly
Prime.
It is necessary to make an image in the mind.
The picture should be clarified.
Hmm, the thing is fine, sir, we understand.
And when we see the entire Bank Reconciliation, then these
things will help us a lot.
We are not taking much time.
Yes, yes, yes, sir, yes, sir, yes, sir.
We got it, sir.
Good.
Take this.
Second reason for difference.
Here it is.
Check deposited in the bank but not cleared.
A check has been received from a debtor and also deposited
in the bank.
A check has been received from a debtor and also deposited
in the bank.
A check has come from the debtor and we deposited it in the
bank on 29th.
At the time of deposit of check in the bank, the amount has
been added in the cash book.
We have entered it in our Telly Prime.
Debit has been done in the cash book.
40,000 rupees.
But the check is yet in clearance.
The check is still in the process of clearance.
It has not been cleared.
The money has not come to our account in the bank.
The bank has not added it in our passbook.
Therefore, no additions are made in the passbook.
The bank has not added anything in the passbook.
This is your reason for difference number 2.
Sir, check issued but not presented in the bank for payment
means
We gave the check, immediately minused it in our cash book,
credited it.
It has not been minused from the passbook.
The cash book has fallen down.
The passbook is up.
Absolutely right.
And sir, check deposited in the bank means
We got the check, we deposited it in the bank.
We added it in our cash book.
It has not been cleared.
There is no entry in the passbook.
The balance of the cash book is up.
The balance of the passbook is down.
This means that both have become opposite to each other.
Absolutely right.
Both have become opposite to each other.
Both are the opposites in themselves.
Check issued but not presented in the bank for payment and
check deposited in the bank but not cleared are opposite
transactions of each other.
Okay, sir.
Let's move to the third point.
To our third point, our third point.
It will be the topic of today's discussion.
Now, this is our third point.
On your computer screen.
Interest allowed by the bank.
Do you know one thing, friends?
What is it, sir?
Whoever has an account in the bank.
All the money in the locker of every bank will be mine.
Did you see?
Whoever has an account in the bank.
Whatever is the balance in that account.
Call it annually.
Call it annually or semi-annually.
It happens annually.
The bank provides interest on it.
The bank says,
If you had not given this money to us, and deposited it in
your account in the bank, and if you had given it to
someone else, then you could have earned some interest from
this money.
But you gave it to us.
We are very grateful to you.
We will give you the interest that you could have earned
from someone else.
Bank nominal rate of interest.
Some banks give nominal rate of interest.
Some banks give good rate of interest.
There is no such thing.
So, you have a rate of interest.
With this, the amount of interest is provided to you.
Yes, sir.
I have told you earlier also.
Have you ever received a call from the bank?
The bank has said,
Hello, Mr. Account holder.
Or Ms. Account holder.
The money deposited in your account.
This much interest is made for that.
If you want, you can send the money home.
Or you can come and take it yourself.
Have you ever received a call like this?
No, sir.
I have never received a call like this.
But you get interest on that balance.
Absolutely, sir.
Do you know what the bank does?
The bank adds that much amount in your account.
At the same time, they enter it in the passbook.
And with the amount of interest, they increase your balance.
At the same time, they enter it in the passbook.
And with the amount of interest, they increase the balance
of the passbook.
They increase it.
Okay, sir.
Now, this is called interest allowed by the bank.
That means, on our balance, the interest that the bank has
given us, this is called interest allowed by the bank.
Okay.
Now, this is my cashbook of the account holder.
And this is the passbook of the bank.
This is the passbook of the bank.
So, what has happened?
What has happened?
The money has increased in the passbook.
Now, there is no entry in the cashbook.
Why? Why? The bank doesn't call us to put money in the
account and take it if there is interest.
They enter the money there.
You know that.
When you get the bank statement at the end of the month,
you see from there.
And basically, this point happens at the time of bank
reconciliation.
Because we never know when the bank has given the interest,
on which date, and how much.
Right? So, we see that from the bank statement.
And after seeing from the bank statement, when we come to
know that there is so much money in the passbook and not in
the cashbook, then we come to know that this is the reason
for the difference.
This is the reason for the difference.
The interest money has been added to the passbook.
But we don't have any entry in the cashbook yet.
You put the entry after seeing from there.
When you look at your bank statement and see how much money
the bank has put in the interest in your account, then you
put the entry to yourself.
Okay, sir.
Okay.
So, let's say you saw
What did you see?
The bank has added 2,000 rupees of interest to the passbook.
You still don't have any entry in the passbook.
So, you will say that the balance of the passbook is up.
The balance of the cashbook is down.
I have a difference.
This is the reason because of which the last balance of the
cashbook and the passbook can be different.
This is absolutely right, sir.
There can be a difference.
Now, some people have questions in their minds.
Some people are saying,
Sir, tell me what to do next.
Sir, what will we do to correct this mistake?
Some people have also decided this.
Some people are saying,
We will put an entry in our cashbook.
We will go to our teleprime in the received voucher.
We will put a debit in the bank account of 2,000 rupees.
Because 2,000 rupees have increased in our bank account.
And this interest is our income.
So, according to the rule of credit all income and gain, we
will credit the interest account.
And we will create the interest account under the heading
of indirect income.
With this, my mismatch balance will be balanced.
Some people are thinking like this.
Okay.
So, friends, it is like this.
What will be the adjustment of this thing?
And how will we play matching?
This is a matter of later.
We will see all this one by one.
That's what I am trying to explain to you that on which
track we are now.
The train on which we are travelling now will take us to
the station where we will get the car.
we will get to know the reason for which there is a
difference and why there is a difference.
We will catch the next train and change from there.
That train will take us to the station where we will get to
know how to rectify the mistake.
How to make the reconciliation.
That second train will teach you.
Okay sir.
Okay.
Some people are saying that they will enter in the cash
book.
We will see that later.
Okay sir.
Sir, rhyming is done.
I have made rhyming.
Do you think so?
Interest allowed by the bank.
Interest on the amount deposited in the bank account is
credited by the bank to our bank account.
Therefore, amount has been added to the passbook.
But no additions are made here in our cash book.
We have not made any entry in teleprime.
That is why this position is formed.
Money has been added in the passbook.
But no entry has been made in the cash book.
Amount is added in the passbook.
There is no entry in the cash book.
That is why there is a difference.
Let's go sir.
Take us on the journey to the next point.
I said let's go.
Let's go on the journey to the next point.
Interest and
Dividend collected by bank.
Interest and Dividend collected by bank.
Let's try to understand this.
This is me.
How many times will you make your face today?
I don't know myself.
How many times do I make my face?
This is my bank account.
Let's do one thing.
This is my bank account.
And this is a company.
This is a company.
C company.
Yes.
What have I done?
Let me tell you the inside story.
I have bought shares and debentures of this company.
I have bought shares, preferentials and debentures.
Which company is it?
I can't disclose the name of the company.
Try to understand.
I told you that I have bought shares and debentures.
Be happy.
I can't disclose the name of the company.
Okay.
Why would I buy shares and debentures?
What will I get by buying shares and debentures?
Why does a person invest in a company?
When shares are bought by a company, the company gives a
dividend to the shareholder in return.
The company gives a dividend to the shareholder in return.
Do you know what it means to buy shares?
You have invested in this company.
You have become the owner of this company.
You will get a share in the profit earned by this company.
When a shareholder invests in a company, the company gives
him a share in the profit in return.
This is called a dividend.
Dividend means the share of this person in the profit.
It is seen on the basis of investment.
What is the total profit according to the investment I have
made?
My share is deducted accordingly.
I have also bought debentures of this company.
What does debenture mean?
I have given some more loan money to this company.
Sir, you had given a dividend in the investment.
What does it mean?
What does it mean to give loan money?
The money I have given to the company and said that I am
giving it as an owner.
That is my capital investment.
It makes me the owner of that company.
The owner gives me the right.
If the profit is more, then my loss is less.
If my money is lost, then my danger.
This is called investing in a share and becoming a
shareholder.
But I have given some money to the company in return of
which I have said that earn more profit, earn less profit.
In return of the money I am giving,
I should get interest at a fixed rate every year.
Such an investment is called debenture.
Investing in danger is called investing in shares.
You will get a fixed amount of interest without any danger.
Such an investment is called debenture.
Why will anyone buy a share in danger?
Debenture is good.
Think about it.
If the company does a very strong business, then this
person will cry when he will buy a debenture.
He will think that if he had bought a share, where would he
have reached today?
Because if the debenture holder gets more profit, then also
the rate of interest will be fixed.
This is the thing.
So friends, what happens is, this company gets interest on
debenture.
I get interest on debenture.
So the shares that I have bought,
I get dividend on them.
The debentures that I have bought,
I get interest on them.
The debentures that I have bought,
I get interest on them.
No problem at all.
Next thing, what did the company do?
This HDFC bank account of mine,
HDFC bank account, sorry, I keep saying that it was my bank.
No, it is not our bank.
It is our bank's account.
This HDFC bank account of mine, the company puts the money
of dividend and interest in my account.
Now, the company does not give cash.
If the company calls you and gives you cash, the company
says, come shareholder, come debenture holder, take this
interest.
So tomorrow, you don't know, you are dishonest, you will
commit a sin, you will steal, you will give cash to the
company, you will not get any proof, you will go and ask
for money again, you will file a court case, they did not
give us money, what proof did the company show that they
paid you?
Where did the company go?
They paid the dividend.
That is why, the money of interest and dividend has reached
your bank account.
The money of interest and dividend has reached there.
Means, for example, 20,000 rupees.
So I can say, in my passbook, 20,000 rupees have been added.
In my passbook, 20,000 rupees have been added.
Absolutely right.
But in my cashbook, but in my cashbook, there is no entry
yet.
There is no entry yet.
Sir, first tell me why there is no entry?
Sir, you think a little more technically.
Sir, as soon as the money is deposited, in the bank account
of HDFC by the company, a message will come on your mobile.
Money will be deposited, a credit message will come on the
phone, and it will be received in your account.
Yes, yes, yes, absolutely.
So sir, you will get to know immediately.
And you should make an entry.
I will not show my message to the accountant.
And I will say, this message has come,
I will pass the entry on the basis of this message.
There will not be a general entry on the basis of the
message in Teleprime.
Okay.
And I am somewhere, the accountant is somewhere.
There is no daily meeting between the owner and the
accountant.
There is no daily meeting.
The accountant keeps working by himself.
The accountant's job is to find a business, find a client,
go to places.
So the owner stays outside.
He will keep playing by forwarding messages.
So how will he handle meetings with clients?
How will he bring a new business?
The accountant enters only when he gets a statement from
the bank.
And in that, he will see the entry that yes, the bank has
put so much money for this thing.
Interest and dividend money have come.
The accountant enters from there.
If the owner is sitting to trouble, then the owner has done
the business.
And one day the transaction will be over.
Because there will be no business.
Then they will see each other's faces.
We have been doing accounting.
As soon as the situation came, there was no need for
accounting.
We have done the accounting.
The work is over.
Okay.
So do you see this reason for difference?
Yes.
What will happen with this?
The balance of the cash book will go up.
How much money?
The amount of interest from our investee has been received
by the bank.
Or the amount of dividend on shares purchased has been
received by the bank.
Investee means where we have invested money.
Investee means the company in which we have invested money.
We have got interest from that company and it has been
deposited in our account.
We have got dividend and it has been deposited in our
account.
Additions are made in the passbook.
Because of which additions have been made in the passbook.
Additions have been made in the passbook.
There is still no entry in the cash book.
This is the scenario.
There is an amount plus in the passbook.
There is no entry in the cash book.
Because of this, there is a difference.
How many reasons for difference have we done?
Sir, we have done four reasons for difference.
Four reasons for difference.
For once, let us revise these four reasons for difference.
Why sir?
Because I know that things will get heavy in future.
I know it very well that things will get heavy in future.
It is my duty to inform you and it is your duty to
understand that yes, revision is necessary.
Because it is the same thing.
Sometimes plus, sometimes minus, sometimes up, sometimes
down.
So there can be confusion in the mind.
It is necessary to do revision. Let's go with it now.
The first point was
Check issued to the creditor but not presented for payment.
He deducted the check from the cash book.
He had tears in his eyes but it didn't reach the bank.
So the money didn't reduce from the passbook.
The balance of the cash book is below and the balance of
the passbook is above.
Reason for difference number 1.
Number 2, Check deposited in the bank but not cleared.
We got the cheque from our debtor
We deposited it in the bank and added it in the cash book
But the cheque has not been cleared yet
There is no entry in the passbook
The balance of the cash book is up and the balance of the
passbook is down
Reason for difference number 2
Number 3.
Interest allowed by bank
The money that we have deposited in the bank
We have added it in our account and the passbook is plus
The passbook is up and there is no entry in the cash book
That poor thing is down.
Reason for difference number 3
Number 4.
Interest and dividend collected by bank
The money that we have deposited in the bank
Interest and dividend
The company whose share we had deposited
The balance of the passbook is up
The balance of the cash book is down
Reason for difference number 4
Number 5
And this is also very famous
This is one of the famous reasons
Reason for difference
Interest and other charges by bank
Interest and other charges by bank charges by bank.
This is also a very famous reason for difference. Bank has
deducted certain amount from our account and effect given
in passbook but no entry has been made in cashbook.
Bank has deducted some amount from our account and we have
put its effect in the passbook and no entry has been passed
in the cashbook.
Bank has deducted some amount from our account and effect
in the passbook and no entry has been passed in the
cashbook.
This is the passbook and this is the cashbook. Do you know
that bank collects some charges from us? Bank collects
charges from us.
Bank makes your account, maintains your details, gives you
locker facility, keeps your money safe, brings your cheques
to another bank and gives you this facility.
Bank has some fixed annual charges, which is called bank
charges.
And the way bank doesn't call you to give interest money,
the same way when you have to deduct money, they don't call
you to deduct money.
If I show you my phone message, what happens in that?
Many times it is written that annual charges have been
deducted from your account.
Bank will deduct from our account. Bank's liability will be
reduced.
Your bank charges are being made and we deduct that much
money from your account.
That much of our debt is over.
The amount of bank charges.
So the message is written, amount has been deducted from
your account.
And there is no phone call, there is no such notification.
So the entry is done from the passbook and so much money is
deducted from the passbook in the name of bank charges.
Now I can't even write in short form, bank charges.
Chat language will be made.
Do you understand? You are very sharp, I know.
So so much money has been deducted from the passbook.
No entry in the cash book.
This is the reason for difference number 5.
Interest and other charges by bank.
Sir, in other charges, you have told that there is a locker
facility.
They clear the cheque and bring the money for that thing.
Now why will the bank charge interest? When did the bank
start charging interest?
A while ago you said that the bank gives interest.
Now you are saying that the bank also takes interest.
Sir, you have made a Singham movie.
Singham does not take, but gives.
The bank does both.
If your overdraft balance has gone, you have used more than
the money in the account.
The bank also gives you an OD facility, overdraft facility.
The bank says that you can use more than the money in the
account.
You can withdraw more than that.
There is a facility, this is a cash credit facility.
In return, you have to pay interest.
So if you have used the money of the bank,
If overdraft has been used, then interest will also be
charged.
Then the interest money will also be deducted from your
account.
Remember.
Okay sir.
And if there is no entry in the cash book, then this will
become the reason for difference.
Because of this, the difference will come.
There is a minus in the passbook and there is no entry in
the cash book.
Next point.
Direct payments made by the bank.
Bank has made some payments from our account and effect
given in passbook.
But no entry made in cash book.
As per our directions only.
The bank has made some payment from our account.
Bank has made some payment from our account.
As per our directions only.
Sorry.
We only told the bank to make this payment.
And effect given in passbook.
And as soon as the bank made the payment, they deducted
money from the passbook.
Reduced the balance from the passbook.
Minus it.
But no entry made in cash book.
No entry has been made in the cash book so far.
Okay sir.
Let me explain this to you.
Let's say I have taken an LIC.
Its premium goes annually.
And I had instructed the bank
to make an annual payment to the LIC company from my
account.
So what the bank does is, as per my instructions, it
deducts the amount and pays the premium.
As a result, the balance is deducted from the passbook.
And no entry has been made in the cash book so far.
As a result, no entry has been made in the cash book.
Yes sir.
So what we do is, we make it a reason for difference.
Passbook is at the bottom.
Cash book is at the top.
This becomes a reason for difference.
Direct payment by the bank on our instructions.
Next 7th point.
Direct payment into the bank by the customer.
Don't get confused after hearing the word payment.
Payment means money will go from our account and money will
be deducted.
Look at the next word.
Into the bank by the customers.
Our customers have deposited money in the bank.
Our customers.
So what will happen?
Sir, the balance of the passbook will go up.
As I told you, anyone can deposit money in anyone's account.
There is no necessity to deposit money.
His.
I said his absence is wrong.
There should be no presence.
To deposit.
The owner's presence is not necessary.
To withdraw.
Presence is necessary.
So the owners went to the bank and deposited.
Passbook got plus.
It will take us some time to enter the cash book.
So we will enter the cash book now.
This is the reason for difference number 7.
Now it's getting faster.
It's getting faster.
Yes, because now it's in your grip.
The customers have deposited some amount in our bank
account.
And hence, the passbook is added up by the bank.
Customers have put some money in our account.
Because of which the passbook has gone up.
The amount has been added to the passbook.
But no intimation is available with the account holder yet.
We do not know anything yet.
That's why there is no entry in any cash book.
There is no entry in our teleprime.
Because of which the cash book is there.
The passbook has gone up.
The reason for difference is that the balances have been
mismatched.
The balances have been mismatched, my dear friends.
This is number 7.
Let's come to the 8th point.
Dishonor of a bill discounted with the bank.
For this, friends, first of all, you have to understand the
meaning of bill discounted with the bank.
When you understand the meaning of bill discounted with the
bank, then you will understand the meaning of dishonor.
Then I will tell you the meaning of dishonor of a bill
discounted with the bank.
Look, friends.
Come very carefully.
This is a very interesting point.
And dishonor happens many times, friends.
Remember.
Dishonor happens many times.
The cheque could not be cleared.
The cheque bounced.
And you had already entered the deposit in your teleprime
in the cash book.
So what happens after that?
So that thing is going to pay a lot of attention.
This is me.
This is my debtor.
And let's take the same example.
Which we were talking about a while ago.
I have sold it.
How much?
I have sold it for Rs. 40,000.
And what did this debtor give me in return?
This debtor gave me a cheque in return.
The debtor has given me a cheque.
What do I do?
Now look carefully, friends.
I will make some changes in this.
To explain this point, I will have to make some changes.
The sale date is, let's suppose, 1st April, 2022.
And the cheque that I have been given.
The date on this has been given after two months.
1st May, 1st June.
1st June, 2022.
The debtor was buying things from me.
And he was asking me for a loan for two months.
He said, I'll pay you after 2 months.
He was an old friend of mine, so I couldn't refuse him for
a loan.
I said, okay, no problem.
He said, I'll give you a loan.
He took his stuff and left the office.
As soon as I said yes for the loan, I called him back.
I said, listen, he's taking his stuff, okay.
He's taking a loan, I'm not refusing, okay.
But man, give us this thing in return.
Look, he's a good friend, but not in business.
Stay away from business.
No friendship.
So I told him, give it in return.
That you'll pay me after 2 months.
I should have some proof.
You take the stuff and leave.
Then I wander around.
That I've done something for you.
I've given you some stuff.
Then you refuse to pay me.
Then I'll go around the court.
And I won't have any proof in court.
That I gave you stuff.
Because I didn't take anything from you in return.
That's why, friends.
I tell him, brother, you give me a cheque.
Put the date on it two months later.
Put the date two months later.
He puts the date two months later.
Because if you put the date today.
Then I'll reach the bank today.
And I'll get the money from his account today.
Or it will take a day or two for clearance.
I'll get the money in two or three days.
Then I told him, give him two months.
But he's asking for two months.
He's asking for two months.
That's why I said, give me the cheque.
And put the date two months later on the cheque.
This will give me security.
That yes, you gave me the cheque.
You won't run away.
I'll take the money.
And if there's no money in your account.
Then I'll be able to file a cheque bounce case.
By going to your bank on the basis of the cheque.
I'll be able to file a cheque bounce case.
I'll have some return proof.
I'll have some evidence to file a case.
And if it's clear, it's okay.
Then there's nothing to worry about.
Then I'll have fun in life.
Then there's no problem.
So he said, okay.
Brother, I'll give you a cheque of June.
He's requesting so much.
So take it.
Take a cheque of June.
Now, friends, what happens?
Only two days have passed.
For example, only one or two days have passed.
And in my business.
Suddenly.
I need funds.
In a very bad way.
There are ups and downs in business.
We may need money at any time.
I suddenly needed funds.
I also tried to take loans in a couple of places.
No one gave me a loan.
It is not available in the market at the moment.
For example.
And I asked a couple of people.
My old debtors.
They were coming for a while.
They said, man, our hands are also tight.
Stop a little.
We can't do it to anyone.
We can't force anyone to give us money.
We have to run the business ahead.
We have to sell that guy next time too.
We can't mess with debtors.
We can't fight with debtors.
In the end, I got tired of losing.
I called this debtor.
I called this guy.
He picked up the phone.
I said, hello, I am speaking.
He said, yes, tell me how are you?
I said, good friend.
But I'm in a little trouble.
He said, why?
What happened?
Tell me.
I said, man.
I need funds suddenly.
In the business.
And your cheque.
I have it.
It's two months later.
So can you pay me today?
I agree.
I gave you two months.
You asked me for two months.
But I need a little suddenly.
Will you please help me out?
Can you do this?
Take this cheque.
And now make a date for the new cheque.
Make me a cheque for the new date.
Can you do this?
Now that debtor has joined hands.
He joined his hands on the phone.
He cut the phone.
Video call.
And video call.
And he joined my hand by doing video call.
And he said brother sorry.
It won't happen.
Why should I ask you for two months if this is the case?
He said so.
If it was just like that, then I wouldn't have paid you
right away.
Why should I have two months.
I don't have money.
Otherwise I don't need a loan cap either.
I didn't want to keep your debt on my head for two months
as well.
But I do not have money.
And I have to understand his situation I asked for his
time, that's why he didn't have money today.
If he had, it wouldn't have been a problem.
He doesn't have money today. That's the problem.
Now, what should I do? Tell me.
Who is the support of a loser? The support of a loser is
Baba Bank.
The support of a loser is Bank Pyara.
We went to the bank.
What do you mean by we? I go to my bank.
My account is in HDFC Bank.
And I tell the manager of the bank my dilemma.
The bank manager says, this is BM.
BM means bank manager.
He says, we understand your situation.
And don't worry.
We will fulfill your urgent fund need.
My tears stopped immediately.
A ray of hope arose in my heart.
A smile appeared on my face.
I found a solution.
I said, how can I help you?
The bank manager said, give us the cheque with the date of
1st June.
I gave the cheque to the bank on 1st June, 2022.
And the bank gave me the money today.
I gave the cheque to the bank.
The bank gave me the funds.
When 1st June comes, the debtor who was going to give me
the money, the bank will take the money and keep it with
them.
So, it didn't help.
What happened was, a friend of mine comes to me.
And he says, I need some money.
I said, okay.
And he says,
I am not getting money from anywhere in the market.
We have another friend.
We had to take money from him.
He is not giving it now.
So, I told him,
I will give you the money.
After some time, he will give me the money.
After some time,
I will take the money from him.
But there is a problem.
What is the problem?
Is it a bank or Shirdi's Sai Baba?
I said, what is the problem?
Is the bank here to help for free?
If the bank gives me 40,000 today, and waits for 2 months,
and after 2 months, it will get 40,000.
It will block its own money.
It will put it at risk.
And after 2 months, it will take the money back.
How stupid is this for the bank?
This is what the bank doesn't do.
Do you know what the bank will do?
The bank will not give me 40,000.
The bank, for example, will give me 38,000 today.
And it will take a cheque of 40,000 from me.
And after 2 months, it will take a cheque of 40,000 from me.
So how much did the bank give me today? 38,000.
How much did the bank take from the debtor? 40,000.
So can you tell the bank how much savings were made in this
process?
The bank saved 2,000 rupees in this process.
The bank does this for this 2,000.
I am telling my friend,
I will take money from that person after 2 months.
I am giving you today, but I am giving you 38,000.
I will take 40,000 from you.
If you want, you can go.
Sir, do you say this to your friend?
If you want to explain the topic, I can say this.
But in real life, there is no such thing.
But we understand the example of the bank.
The bank is not someone's friend.
Yes, sir.
This 2,000 is called discounting charges.
Discounting charges.
And this whole process, this whole process is called this
whole process is called discounting of the bill.
Discounting of the bill.
So if you want to understand the meaning of this in one
line, discounting of the bill, then what does it mean in
one line?
In one line, it means friends, clearing the cheque after 2
months from the bank today and getting some money deducted
from the bank today is called discounting of the bill.
After 2 months, we gave the cheque of 40,000 to the bank
and got 38,000.
We got 2,000 discounting charges deducted.
This process is called discounting of the bill.
And that 2,000, why will I be ready to take 38,000?
Because I have an urgent need of funds.
I am in urgent need of funds.
That's why I will be ready to take 38,000.
I want 38,000.
This is 38,000.
I will be ready to take 38,000 or even 37,000.
If the bank says 30,000, then I will think.
That's why the bank people also think and tell.
If they say 30,000, then they know that this person will
say,
I will not do so much loss that I have to come on the road
tomorrow.
Then a person thinks like this.
That's why a little amount is deducted.
So this is the meaning of discounting of the bill and
discounting charges. Now I will explain further.
For example, now I will write in blue color. What happens,
for example,
I went to the bank.
I gave this cheque to the bank today and I took 38,000 in
return.
Now the bank is dreaming that two months will pass and
40,000 will come from the debtor and as soon as 38,000 and
40,000 come, 2,000 will be earned.
This beautiful dream of the bank breaks.
If the dream breaks, then the heart burns.
Yes, it hurts a little, but it works. Now some people are
saying,
Sir, now I will not be able to study.
It's a painful song, all the sorrows have woken up, now I
will not be able to study.
I said, sit for 10 more minutes, it will be over, no
problem,
I will take care from now on, I will not sing such songs,
or else my pad disappears after listening to my song.
There is some pain in the heart of the pad, in the heart of
the notepad, it is also listening to the song carefully, it
has not disappeared this time.
What happens, the dream of the bank breaks. The debtor did
not pay the bank after 2 months of 40,000 Rupees.
He did not.
The reason could be anything.
It could be that he has become insolvent.
It could be Diwali.
The debtor has become insolvent on Diwali.
This could be the reason.
There could be other reasons.
For now, there is no money in his account.
He will come after some time.
Any reason.
All in all.
The bank did not get 40,000 Rupees.
Think about the bank.
He has given 38,000 Rupees.
He thought he will get 40,000 Rupees and earn 2,000 Rupees.
To get back 38,000 Rupees.
There is a problem.
In the greed to earn 2,000 Rupees.
He went for 38,000 Rupees.
As soon as he raised his head.
He started crying.
Do you know?
Who will be caught by the bank?
The bank.
Friends.
Will not say anything to this debtor.
The bank will catch me.
The bank will say.
Son, you gave me this cheque.
We do not know who the debtor is.
He went to collect.
He could not have it.
Okay.
You give us this money.
The bank will deduct money from my account immediately.
Will not happen.
Will send it to OD.
Will start investing interest.
The bank will deduct money from my account immediately.
Immediately.
So.
Dishonor of a bill.
Discounted with the bank.
Means.
Cheque after two months.
Today I cleared it from the bank.
Brought a little less money.
And I told the bank.
After two months.
Take it from my debtor.
But my debtor did not give money to the bank after two
months.
This is dishonor of a bill.
Discounted with the bank.
In return, the bank will deduct money from my account.
The bank will take its revenge from me.
Because who knows the bank?
From me.
Who gave the cheque to the bank?
I.
Who is the criminal of the bank?
I.
Who will be handcuffed?
Me.
I do not get handcuffed.
The bank will deduct money from my account.
Whose neck will I hold?
Sir.
You will hold the neck of your debtor.
So what will happen?
Dishonor of a bill.
Discounted with the bank.
Scenario.
The bank.
He will hold my neck.
The bank will hold my neck.
My neck.
In the hands of the bank.
And I.
I will hold the neck of the debtor.
My neck.
In the hands of the bank.
In my hands.
And what is the meaning of the neck?
The bank says.
We are deducting money from your account.
The bank will deduct money from my account.
And when will I know?
That my debtor has dishonored.
My debtor has not given money to the bank.
In return, the bank has deducted money from my account.
At the time of the statement.
That's why my dear friends.
This has become a reason for.
Difference.
Come on, let's read it.
It will be fun to read.
It took 10 minutes.
This point will be clear all my life.
It was not an easy discussion.
But you listened carefully.
Very good.
When a bill of exchange.
Bill of exchange means take a cheque.
When a cheque is cleared with the bank.
Before the due date.
On the cheque of the bank.
The date that was put on the cheque.
I got it cleared before that.
Because it was an urgent need of funds.
In return, I got 2000 rupees deducted.
No doubt.
Then it is called.
Discounting of the bill.
This process is called.
Discounting of the bill.
When a bill of exchange is cleared.
With the bank.
On deduction of.
Some discounting charges.
On deduction of.
Some discounting charges.
Before the due date.
Discounting of the bill.
If such discounted bill.
Doesn't get paid to the bank.
On due date.
If the debtor does not pay the bank on due date.
Then it is called.
Dishonor of a bill.
Discounted with the bank.
Then it is called.
Dishonor of a bill.
Discounted with the bank.
In such a case.
Bank deducts the concerned amount.
From the account of the person.
Who got the bill discounted from the bank.
Bank will not fight with the debtor.
The person.
Who gave the bill to the bank.
Bank will deduct money from his account.
What will happen?
What will be the scenario?
The scenario will be.
The amount will be minus from the passbook.
And there will be no entry in the cash book.
There will be no entry in the cash book.
This is a reason for mismatch.
So we have 8 reasons for mismatch.
Now friends see.
It is not that this is an exhaustive list.
Exhaustive means complete.
That there are only 8.
There can be someone else.
But do you know what I have taught you here?
What I have basically taught.
And what you have basically learned.
That is the way of thinking.
The way of thinking.
The way of looking at things.
What are the differences in bank reconciliation?
How do we fix those things?
The way of thinking.
And the way of looking.
This is what you have learned here.
This is the main thing.
So if there is any other reason for difference.
You will be able to think.
What does it mean?
So if because of this.
My passbook has become monotonous.
If because of this, my passbook has become positive.
Then we will fix it like this.
If because of this, my cashbook has become negative.
Then we will fix it like this.
If because of this, my cashbook has become positive.
Then we will fix it like this.
You have learned the way.
You have learned the concept.
You have got the understanding.
Now if there is a new reason.
Then it is not a difficult thing.
Once the revision of 8 to 8 is done.
If you say along with me.
Then I would find that it is very good.
Check issued but not presented for payment.
Say.
What would we have done with the cashbook as soon as we
issued the check?
Now say directly.
If it comes.
If you feel that why are you getting the revision done
again?
Then say directly.
What scenario is made?
Sir check issued but not presented.
Cashbook has been minused.
And there is still no entry in the passbook.
Cashbook has been minused.
Absolutely right sir.
Check deposited in the bank but not cleared.
Cashbook has been plused.
And there is still no entry in the passbook.
I said very good.
Interest allowed by bank.
Means sir, it has been plused in the passbook.
And there is still no entry in the cashbook.
The bank has given interest and deposited the money in the
account.
Okay sir.
Interest and dividend collected by bank.
Absolutely same.
The bank has deposited the money in the account.
It has been plused in the passbook.
There is still no entry in the cashbook.
Interest and other charges by bank.
Money has been minused from the bank's passbook.
And there is still no entry in the cashbook.
The interest and other charges by bank.
Means the bank has minused money from the passbook.
And there is still no entry in the cashbook.
Direct payment by the bank.
Absolutely same scenario.
The cash has been minused from the bank's passbook.
And there is still no entry in the cashbook.
Not cleared yet.
Direct payment into the bank by the customer.
What does direct payment into the bank by the customer mean?
Sir, it means that direct payment into the bank by the
customer means that our customer went to our bank and got
the money plused.
So the passbook is plused and there is no entry in the
cashbook. And dishonor of a bill discounted with bank means
our debtor cheated and in anger the bank deducted money
from our account and the passbook is minused and there is
no entry in the cashbook.
No entry in the cashbook.
There is no entry in the cashbook.
So friends, I would like you to write once in this short
form.
It will come in a very good grip.
If you write once like this, it will be a very good job.
This would be a tremendous deal if you do it once like
this. Okay, write and note it down.
And I would like you to revise it once. All of you. Not now.
I have just said it.
If you listen again, it will be three times.
You will get bored.
Then you will hit the dialogue.
I have said it three times.
Are you deaf?
Okay, no problem.
So what do you have to do? What you have to do is write it
to yourself and revise it at home and practice.
Yes sir, we will definitely do it.
We will definitely do it.
If you do not understand any word from this, please ask me.
But do note it.
12345678 Cashbook minus
Passbook no entry Cashbook plus
Passbook no entry Passbook plus
Cashbook no entry Passbook minus
Cashbook no entry Passbook plus
Cashbook no entry Passbook minus
Cashbook no entry I will tell you a little bit of the
process ahead.
Now we will do some practicals on this.
Okay sir.
Before doing practicals, we will see how to rectify these
reasons.
Now we know BRS is made to match the difference between
Cashbook and Passbook.
We have also seen why there is a difference.
Now we will see how to correct the difference and match it.
We will rectify the reasons.
Then we will do some practicals.
Then we will come completely in Teleprime and how it will
work in Teleprime. So this will be our journey ahead.
We will meet you in the coming clips.
Till then, thank you, bye bye and take care. Thank you.