Hello friends, hello, mic testing, hello, hello, hello,
hello, 1, 2, 3, 4, 1, 2 ka 4, 4, 2 ka 1, my name is Lakhan.
Sir, you look very happy, what is the matter today?
The thing is that whatever we have discussed so far, the
theory that we have studied so far, now it is time to see
its practical.
A few questions will flash on your computer screen.
Before that, I will say a few more small, small, small, big
things, then I will give you some practicals, then on the
journey of teleprime, we will leave, take off.
Tell me how was it?
Sir, it was great, without any delay, sir, start.
Here you are, come friends, come friends, come friends.
Let's see what were left.
Hmm, hmm hmmm, hmmm everything was done here.
Hmm, hmm here it is written.
Here a format of some bank reconciliation statement has
been happening.
But friends this will be useful only to understand the
theoretical concept.
How we apply the concepts that we have learnt in the
question here will only help in that.
And there is no need to see this here.
but when we understand this, then only we will understand
teleprime better that's why it is important to do this ok
sir and what does golden words say? golden words say BRS is
a separate statement in which the balance of cash book and
passbook is adjusted no adjustment is made in cash book and
passbook itself bank reconciliation is a separate statement
it is not that we make a fuss in passbook it is not that we
make a fuss in cash book we take a separate paper and
adjust the balance of cash
and try to bring it equal to passbook or adjust the balance
of passbook and try to bring it equal to cash book as far
as theoretical things are concerned when we will do in
teleprime then we will be adjusting the balance of cash
book because we have only cash book ok sir ok let's see
some more things here the plus item column denotes
favorable condition to the account holder and minus item
column denotes unfavorable condition to the account holder
debit balance as per cash book means favorable
credit balance as per passbook means favorable means see
friend the account holder whose account is in the bank we
have to think from his point of view that when it will be
favorable for him it will be for his favorable side and
when it will be unfavorable to him it will be for his
adverse side we have to think from the point of view of the
account holder so sir if we have to think favorable from
the point of view of account holder then two things are
favorable
it is good thing for this account holder it is favorable
thing it is good condition how sir
What is the meaning of debit balance in cash book?
That money has come to our account
Our money is deposited in the bank
We do debit what comes in
So it is a good thing that your money is deposited in the
bank account
Your money is deposited on the bank
Is this a good position?
Yes, of course
And the bank says the same thing from their angle
Credit balance as per passbook
The bank says, yes, your money is deposited on us
So these two things are called favorable for the account
holder
Debit balance as per cash book
And credit balance as per passbook
And these two things
Credit balance as per cash book
And debit balance as per passbook
These two things are called unfavorable
These two things are bad for the account holder
This is a bad situation for him
This is an unfavorable condition for him
How sir?
What is the meaning of credit balance in cash book?
The money of the bank has been deposited on you
You have used more than the money in the account
Oh my God
How do the bank people write this?
By writing debit in your passbook
Debit balance as per passbook means
Now the bank has to take money from you
So this is an unfavorable condition for you
It's a bad situation, it's a bad thing
The cap of debt is on your head
Okay sir
So from the point of view of the account holder
Keep this word in mind
Debit balance as per cash book
And credit balance as per passbook
It is a good thing for him
It is a favorable condition
And credit balance as per cash book
And debit balance as per passbook
It is an unfavorable condition for him
Look friends
When you have a bank statement
Practically you are working
You have a bank statement or bank passbook
So if you see in it
Credit balance is written
So believe me
The money of the account holder has been deposited in the
bank
It is a good thing for the account holder
The money of the account holder has been deposited on the
bank
Okay sir
And friends
If you see the debit balance written somewhere in it
So understand the meaning
That the money of the bank has been deposited on the
account holder
This is a bad equation for the account holder
The business of which you are doing accounting
The business of which you are making BRS
Debt has come on it
The money of the bank has been deposited
Immediately understand as soon as you see the debit
I am saying balance
Final balance
In transactions
Debit and credit
Debit and credit will continue
Sometimes money will come
If there is a debit balance in the final
Then it becomes a bad situation
Okay sir
Okay Note
Unfavorable balance is known by another name
What is the name?
Overdraft balance
And leave this second note
This is completely theory
This will not apply in practical things
My dear friends
Okay sir
We don't have any problem
Now you take us ahead of the discussion
Bring on the questions
I said okay
Very very good
Let's go
Look at this
You have to see some shortcut tricks
No. A
No. B
No. C
No. D
There are four shortcut tricks, friends
Four cases
Four shortcut tricks
And BRS
Finished Do you know Chris Benoit?
He used to come in WWE
Finished
He didn't speak like this
I mean I am speaking
His mark was like this
He is English
He will not say finished
He is not a fake undertaker of a sports movie
He is not an undertaker
Who will keep on speaking in Hindi
And our people will keep on becoming fools
He is a real undertaker
Search on Google
His name is James or David
He is not an undertaker
Okay sir
Okay So let's come back to the concept
Look friends
We have seen many reasons of difference
Difference can come for many reasons
Yes sir
We have seen many reasons
Difference can come for many reasons
Hmm So Let's pick one by one
And try to understand the cases
Take this
Take this friends
Check issued but not presented for payment
What was the situation from here?
We gave the cheque
We made the creditor minus from his cash book
He has not reached the bank yet
So there is no entry in the passbook
The money has not been deducted from the passbook yet
The whole situation is
The money has been minus from the cash book
But there is no entry in the passbook yet
The cash book has fallen down
So see
Which case we have here
There is already minus in the cash book
But there is no entry in the passbook
This is the case of C
This amount has already been minus from the cash book
But there is no entry in the passbook yet
There is already minus from the cash book
But there is no entry in the passbook yet
So friends tell me one thing
Has the cash book fallen down?
Absolutely right sir
And the passbook has gone up
Yes Because by minus in the cash book
It has been dropped down
By minus in the passbook
It has not been dropped down
Cash book is down
Passbook is up
So How did they come equal?
This gap between them
How to remove it?
Tell me
Now some people will say
Sir, the passbook will also have to be dropped down
Then their balance will match
Because they are saying
If the cheque is issued
Then it will have to be minus from the cash book
It means
Minus in the cash book
It is not wrong
Minus from the passbook is left
So minus from the passbook
As soon as minus from the passbook will be done
Then it will come down
But friends
Friends Minus from the passbook
It is not in your right
You are not a bank
You can't tease the passbook
You can't tease in the passbook
If you tease in the passbook
You will go to jail
You are absolutely right sir
You can't tease in the passbook
That's why I told you a little while ago
BRS is a separate statement
In which the balance of the cashbook or passbook is adjusted
Not the cashbook or passbook
You can't adjust the passbook
You can't touch
Whatever entry will be done in the passbook
Will be done by the bank How can you tease it?
How can you make any alteration in it?
Not possible
We don't have to go to jail
Absolutely right
You don't have to go to jail
No alteration
You can't do it
It is the job of the bank
The bank will enter there
That's why a separate paper is picked up Now some people
will say
Sir, do it in the cashbook
Now tell me one thing
What should I do in the cashbook?
Then passbook
It is forbidden to bring down It can be equal in two ways
First listen to this
Either take the cashbook up
Or take the passbook down
Now bringing down the passbook
It is forbidden
Because we can't adjust it
Fine Second thing
We have not made any mistake in the cashbook
By minus
If you have given the cheque to the creator
Then you will have to minus the money from the cashbook
You will have to bring down the balance of the cashbook
What is there to say in that?
The thing is absolutely right
So friends
We neither take the cash book up nor run the passbook.
The balance of the cash book or passbook that we see, we
pick up a separate paper and adjust these balances and make
them equal to each other.
We don't touch the main cash book or main passbook.
We pick up a separate paper and adjust it in the balance of
the cash book or passbook and make it equal to each other.
Oh, okay sir.
That's why I said that BRS is a separate statement.
BRS is a separate statement.
So listen to me now.
This is my cash book which was below and this is my
passbook which was above.
We don't have to adjust these two, but we can adjust their
balances and make them equal.
So the balance of the cash book is below and the balance of
the passbook is above.
We will pick up the BRS.
We have to match these two balances.
So what should we do?
Either we add it to the balance of the cash book and see if
it is equal to the balance of the passbook or not.
Either we add it to the balance of the passbook and see if
it is equal to the balance of the cash book or not.
That's right, sir.
Sir, why are we adding to the balance of the cash book?
You only said that we added to the balance of the cash book
and made it equal.
When we gave the cheque to the creator, it must have been
equal to the balance of the cash book.
Why are we adding to the balance of the cash book?
Listen carefully.
We are not adding anything to the balance of the cash book.
We are picking up the balance of the cash book on a
separate piece of paper and adding it to it.
This BRS has no effect on your main balance sheet or main
accounting.
This is a separate piece of paper.
We are not adding to the balance of the cash book.
We are picking up the balance of the cash book and adding
it to it.
We are just checking that if we add this error and this
timing difference to the balance of the cash book, then it
is equal to the balance of the passbook or not.
If it is equal to the balance of the passbook, then it is
very good.
You know that this was the only mistake due to which the
balance of the cash book and the passbook was mismatching.
There is no other mistake.
And if it is not equal to the balance of the passbook, then
it will indicate that more adjustments have to be made.
More mistakes are yet to be made.
This will be the indication of this.
So, the main objective of BRS is to find mistakes.
Yes!
With BRS, we get to know why there are errors and what are
the mistakes.
And whether all the mistakes have been found or not.
There is still something left.
Oh! Okay, sir.
And in the same way, by taking the balance of the passbook,
you can also minus it and get it equal to the balance of
the cash book.
Look at this.
This is the cash book.
There are a lot of transactions going on in this.
This is the passbook.
There are a lot of transactions going on in this.
But finally, its balance is X and its balance is Y.
Then you lift up another paper and then what you do, you
try matching them.
Either you take it from the passbook and then you look at
it.
If it is here in the passbook, then it is also there in the
cash book.
If it is here in the passbook, then it is also there in the
cash book.
If it is here in the passbook, then it is not there in the
cash book.
If it is here in the passbook, then it is also here.
It is here, it is here, it is here, but it is not here.
Either this is the way.
What is the other way to do it.
The other way is with a black colored pencil.
The other way to do it is to take the X.
means by looking at this, if there is here in the cashbook
there is here, there is here, there is here, there is not
here but there is here, there is here, there is here,
transaction is here there is not here, but there is here.
In this way also you will get a mistake, yes.
So I'm saying, run with the balance of the cashbook then
you will get all the errors or run with the balance of the
passbook then also you will get all the errors it's not a
problem that photo used to come in the newspaper in two
movies, Antar Dhonde
There were two similar photos in which there were minor
differences and we had to find out where the differences
were.
So, do you always do this that you mix the first photo with
the second one?
Sometimes in the second one, sometimes in the first one.
We used to do it like this, yes.
So, what is the proper way to do it? Either pick up each
item from the first picture and see if it is there or not
in the second one.
Or else, match each item from the second picture with the
first one and see if it is there or not.
So, you used to find all the differences.
We have to do exactly the same thing here.
We can have two options.
Either mix the first photo with the second one or mix the
second photo with the first one.
I remembered some of the principles of physics, sir.
So, we have a case that either add to the balance of the
cash book or minus in the balance of the passbook. Keep
this in mind.
I am not asking you to add to the cash book.
I am not asking you to minus in the passbook.
I am asking you to add or minus on a different paper in
their balance.
Cool, sir. Super cool.
Super duper cool, sir.
Okay, fine.
Here you go, friends.
So, what options do we have?
Either add to the balance of the cash book or minus in the
balance of the passbook.
Okay, sir. No problem at all.
Let's move to the next point.
Check deposited in the bank but not cleared.
What was in this case?
This money is plus in the cash book but no entry in the
passbook.
This time, the amount is plus in the cash book and the cash
book is up.
There is no entry in the passbook yet so the passbook is
down.
So, tell me, how do we match these balances?
The cash book is up and the passbook is down.
Friends, tell me how to match these balances? What is the
way?
I will tell you what is the way.
Either pull the balance of the cash book to bring it down
and minus in the balance of the cash book or plus in the
balance of the passbook and bring it up.
Grab his neck...
Grab the neck of the passbook and pull it up or the leg of
the cash book and pull that down.
Plus in the cashbook balance or more in the passbook
balance.
What is the product?
Here it is.
Check deposited in the bank but not cleared
This means that the check has already been deposited in the
cash book
There is no entry in the passbook yet
We went to the bank, deposited the check
We added our cash in the cash book
But the check has not been cleared, so there is no entry in
the passbook yet
Two options
If the balance of the cash book is above and the balance of
the passbook is below
Pull the leg of the balance of the cash book and minus it
Or take the neck of the balance of the passbook and add it
to it
Okay, okay, okay
Let's move ahead
Interest allowed by bank
There is a plus in the passbook and no entry in the cash
book
The bank gave interest and deposited it in our account
There is a plus in the passbook and no entry in the cash
book
Tell all the smart kids
Tell the successful people of the future
Tell the people who are going to make names in the future
Which balance will be above?
Sir, the balance of the passbook will be above
Because there is a plus in it
The balance of the cash book must have been left below
The balance of the passbook will be above
What to do?
Sir, bring the balance of the passbook down
Pull the leg of the balance of the passbook this time
Or take the neck of the balance of the cash book and take
it up
Absolutely right
So which case are we making?
Here is the B case
There is already a plus in the passbook
There is no entry of that amount in the cash book yet
So either take the neck of the balance of the cash book and
take it up
Or pull the leg of the balance of the passbook and bring it
down
Okay sir, okay
Let's try to understand the last case
Let's keep going line by line
Interest and dividend collected by bank
This is also the same
Just like above
There is a plus in the passbook and no entry in the cash
book
So either minus in the balance of the passbook
Or plus in the balance of the cash book
Interest and other charges by bank
Let's understand this
Bank has deducted money from your account through casualty
So the amount from passbook has been minused
There is still no entry in the cash book
Balance of the passbook is lying on the floor
And the balance of cash book is on the top
So either take the neck of the balance of the passbook and
bring it up
Or pull the leg of the balance of the cash book and bring
it down
Let's see this case
Amount is deducted from the passbook
The amount is already minus
There is still no entry in the cash book
So either take the neck of the balance of the passbook and
bring it up
Or pull the leg of the balance of the cash book and bring
it down
Okay, sir, no problem here.
Let's see the next.
Direct payment by the bank.
Bank has made a direct payment from our account, which I
gave an example of insurance premium.
So, what is happening?
We are making a direct payment from the bank.
The money has been deducted from the passbook.
There is no entry in the cashbook.
Is the neck of the passbook balance up
Or is the cashbook balance pulled down? Direct payment into
the bank by the customer.
The money has been deposited in our account.
Passbook balance is up or below the cash book?
So, bring the balance of the passbook down
Or take the balance of the cashbook up.
Dishonor of a bill discounted with the bank.
The money has been deducted from the passbook.
There is no entry in the cashbook.
The balance of the passbook is down.
The cashbook is up.
So, take the balance of the cashbook down
Or take the balance of the passbook up.
Tell me, how was it?
Sir, it was fine.
Okay.
See, we had a lot of discussion in the last class.
I have done a lot of discussion, that's why I am not able
to speak fast in front of you.
It's not that I started speaking fast.
I explained a lot, I worked hard.
That's why you are understanding everything at once.
Okay sir.
Now we are able to move towards a practical.
Now let's do a practical journey.
Yes sir.
There is a question.
Let's see.
There is a question.
On 31st March 2019, the bank passbook of Namrata showed a
balance of Rs.
1,50,000 to her credit while balance as per cashbook was Rs.
Practical things are coming now
Completely practical things are coming now
The passbook of Namrata
Namrata is an account holder
According to her passbook, the first thing of Rs.
1,50,000 is credit balance
Credit balance means good or bad
In passbook, credit balance means good or bad
Credit balance as per passbook means favorable
Good means good for an account holder
Namrata's balance is Rs.
While, the cashbook says balance is Rs.
Balance is mismatched due to some reasons
Both books were investigated
Both books were matched
It was found out the reason for this difference
On the scrutiny of the two books, we found out the reason
for this difference
Following are the causes of difference
First reason
She has issued cheques amounting to Rs.
Namrata has issued cheques amounting to Rs.
When cheque is issued, cashbook must have deducted Rs.
80,000 from it
Out of which only Rs.
32,000 were presented for payment
Namrata has issued cheques amounting to Rs.
Creditor has issued cheques amounting to Rs.
Namrata has issued cheques amounting to Rs.
You can see the difference
Cheques amounting to Rs.
48,000 have been deducted from cashbook
But there is still no entry in her passbook
Cheques amounting to Rs.
48,000 have been deducted from cashbook
But there is still no entry in her passbook
Due to which my cashbook balance has fallen
And my passbook balance is up
I have two options
Either I can make my balance equal to my passbook balance
Or I can make my balance equal to my passbook balance
These are the two options
Let's see the solution
Namrata Bank Reconciliation Statement 31st March 2019
Particulars, plus item, minus item
Plus item means favorable things
Good things from account holder's angle
Minus item means unfavorable things from account holder's
angle
Balance as per passbook credit
Is it good or bad?
It's good.
How much? Rs.
We have taken the balance of passbook
Now we will adjust it
And we will try to make it equal to cashbook balance Rs.
Which option will we have to choose?
We will have to choose this option Minus item in passbook
balance
Because we are adjusting passbook balance
We have taken Rs.
We are making it equal to Rs.
There can be another way to make BRS Take Rs.
1,20,050 and make it equal to Rs.
I will make it equal to Rs.
1,50,000 in some time
By this you will know
BRS doesn't mean that you are adjusting something in
cashbook or passbook
No, it is a skill to make balance equal to another balance
on a separate paper
Whether you start from 1st and come to 2nd
Whether you start from 2nd and come to 1st
After making BRS, it becomes so clear that
Finally, if the balance is matched
Whether you start from 1st and make it equal to 2nd
Whether you start from 2nd and make it equal to 1st
Finally, if the balance is matched
It means you have got all the mistakes
These are the points of BRS
Whatever mistakes are pending on behalf of the bank
You make them and give statement to the bank
And you tell the bank that these points are pending
You have to take care of them They should be entered
You have to enter them in your passbook
Whatever are pending on behalf of you You can do it later
And adjust them in your cashbook
Oh, okay, okay So, we have to choose minus option
That's why we will minus Rs.
48,000 from the balance of passbook
We will minus it
Next thing
She received a cheque of Rs.
Which she recorded in her cashbook But forgot to deposit in
the bank
My goodness
You should see it carefully
First, I will rub it up
This happens practically You have entered the cheque in
your cashbook
But you have not deposited it yet You have not deposited it
yet
How much is the cheque?
Rs. 5000
Which she recorded in her cashbook
So, as soon as the cheque came She danced
Namrata's accountant said She has added Rs.
5000 in her cashbook
But she has not deposited the cheque in the bank
Why? The boy is on leave
We don't have time to go to the owner
The accountant says I take salary to deposit the cheque
Keep the boy and sell him
He is not going
You have entered the cheque
But the office is closed to deposit There can be any reason
The cheque has come but the deposit has not been done
Has the money been added in the passbook?
No, sir.
The bank is not dreaming So, what will be in the passbook?
No entry
The balance of the cashbook is up The balance of the
passbook is down
Tell me two options
Sir, either in the balance of the cashbook
We minus Rs.
We subtract it Or in the balance of the passbook
We add Rs.
Because we are running with the balance of the passbook
So we have to add Rs.
We have to plus Rs.
Ok You have to choose the option of the passbook
You have to choose the option
In the balance of the passbook
Not in the balance of the cashbook What is coming out
A cheque of Rs.
Deposited by her Has not been cleared yet
Deposit A cheque of Rs.
Deposited by Namrata in the bank
The same thing Must have been added in the cashbook
Rs. 22000
Has not been cleared yet
What will be in the passbook?
No entry
Again the same scenario
The balance of the cashbook is up The balance of the
passbook is down
If you are running with the balance of the cashbook
I will show you in a while If you are adjusting the balance
of the cashbook
You have to choose the option of the plus
So Rs.
22000 will come under the plus column
Will come under the plus item
We will do Rs.
Number 4
Mr. Gupta
Deposited an amount of Rs.
In her bank Sir Mr.
Gupta is written
How can every word come
This Mr.
Deposited in Namrata's account
You just leave it
Your English grammar is also bad
I was just thinking that your mathematics is bad
Your English grammar is also bad
I am in a bad way
Mr. Gupta deposited an amount
Of Rs.
15700 in her bank
Which has not been recorded
By her in cashbook
Mr. Gupta went directly
Put Rs.
15700 in our account
In the bank So my passbook has been plus
And has not been recorded
In the cashbook There is no entry
We do not know in the cashbook There is no entry in the
cashbook
So the balance of the passbook has gone up
There are two options below the cashbook Take the balance
of the cashbook up
Or take the balance of the passbook down
One friend is spoiled
There are two options to make both equal
Either spoil the improved one or improve the spoiled one
Okay Now you are saying sir
That one should improve the spoiled one Think about
practical life
Has it ever happened
That one spoiled and one improved
Both have improved What are you saying
It depends on fate
How is your company
Rs. 15700
We have to do minus
It is attached to the balance of the passbook
We have to remove it from there Bank has credited
Rs. 1500 of interest
What does credit mean
Bank has credited It is very practical
Bank has credited Means we have received a message
This amount of Rs.
1500 interest has been credited to your account.
So has he added money to our passbook or minus?
He has added. He taught us in the very first class.
In the very first class.
That if the bank is crediting, in the passbook, credit
means plus and in the passbook, debit means minus.
In the cashbook, debit means plus and in the cashbook,
credit means minus.
Anyway, the bank is crediting interest money, so it is plus
only.
How much is 1500 rupees?
No entry has been made in the cashbook yet.
The balance of the passbook is up, the balance of the
cashbook is down.
So take the balance of the cashbook up or bring the balance
of the passbook down.
So we are adjusting with the balance of the passbook.
We will bring it down by minusing 1500 rupees.
Last but not the least, while charging 250 rupees as bank
charges and the bank has deducted the bank charges of 250
rupees.
Bank charges are deducted.
So this money has been deducted from the passbook.
And there is no entry in their cashbook.
This money has been deducted from the passbook.
So what is the reason?
Sorry, what is the scenario?
The cashbook is up, this time the balance of the passbook
is down.
So either bring the balance of the cashbook down by
minusing it or bring the balance of the passbook up by
plusing it.
So we will choose the plus option in the balance of the
passbook.
Okay sir.
Now pick up your calculator and see.
Finally, when we started the journey with the balance of
the passbook
when we started the journey with the balance of 1,50,000
rupees so by adding or subtracting from that, is it equal
to 1,20,050 or not?
First of all, we subtracted 48,000.
So subtract 48,000 from the calculator.
Then we added 5000.
Add 5000.
Then we added 22,000.
Add 22,000.
Then we subtracted 15,700.
Subtract 15,700.
Then we added 250.
Sir, magic.
It's magic.
I've got the vibe all you need.
He says something like this.
I have got all the vibes that you need.
He says something like this.
As soon as the curtain fell.
There is a song by Melika.
There is no change that can change.
Okay.
No change.
What didn't change?
Your and my way of getting the right answer didn't change.
Even today, we reach the right answer by asking questions.
We will keep reaching tomorrow.
There is never a mistake.
Why? Because we discuss the whole concept.
And your hard work.
By putting four moons in it.
This scenario becomes worth it.
Okay, sir.
Okay.
Here, brother.
1, 12, 0, 50 came.
Sir, you were also saying.
That we can adjust in 1, 12, 0, 50.
And bring it up to 1.5 lakh.
How will that work?
I will show you that work too.
Take this.
Which page is this?
We have a question on number 11.
Okay.
So, let's take the balance of the cash book.
Let's do one thing.
Take this.
Write with me.
All dear children.
With this, the matter will become clear to you like water.
Don't think why I am making you write.
The matter will become clear to you like water.
Take this.
A better picture of BRS will be made in front of you.
Start writing.
Namrata.
It takes time to learn something from the root.
Bank Reconciliation Statement.
Namrata.
Bank Reconciliation Statement.
As on 31st March, 2019.
Particulars.
Plus items.
Minus items.
Friends, I know that you are seeing a little energy low.
It might be possible.
But there is no increase in the concept.
Energy can be a little low because
I am not feeling well.
I have a lot of headache and
I won't say much fever.
But I feel very tired.
And I have a lot of headache.
But recording is being done for you.
Anyway, I shouldn't say this.
It's being done for you.
It's my job.
I am recording for myself and still going.
But you just need a little adjustment.
Okay? Okay, sir.
Okay.
It's for you.
You don't have to do any favor.
We like to work.
No doubt.
We are working for an earning.
What's in it?
Okay? You do a little adjustment from your side.
Okay, sir.
No doubt.
We will do it.
Sure.
Thank you.
Here it is.
So let's start with the balance as per cash book.
Balance as per cash book.
And if the credit balance in the passbook is favorable.
So what do we call the favorable balance of the cash book?
We are debit.
I showed you in the beginning.
Look at this.
We are calling the credit balance as per passbook favorable.
So it means that the debit balance of our cash book will be
favorable.
Means here we will take the favorable column.
This one.
We will take 1250 in this.
We will take 112050 in this.
Okay.
Come on.
Now let's see the points one by one again.
Issuing a cheque for Rs. 80,000.
Only Rs. 32,000 are present.
What is the scenario?
Rs. 80,000 have been deducted from the cash book.
Whereas Rs. 32,000 have been deducted from the passbook.
So Rs. 48,000 have been deducted from the cash book.
Whereas there is no entry in the passbook.
Means the balance of the cash book has fallen down.
And the balance of the passbook is up.
Two options.
Minus the balance of the passbook and bring it down.
Or.
Pick up the balance of the cash book which has fallen down
and take it up.
Because this time we are adjusting the balance of the cash
book.
So this time we will make it plus.
The balance of this cash book.
We will pick up 112050 and take it up a little.
We will make it plus in this 112050.
Rs. 48,000.
Means this will become an ad.
Although there is no need to write the ad.
Because we are writing under the plus item.
So just write this much.
Sir, do we have to write something like this in Tally
Valley too?
No, you don't have to write anything like this.
Now just understand.
Cheque issued.
But not presented.
Rs. 48,000.
Cheque issued.
But not presented.
Rs. 48,000.
No doubt sir.
No problem.
After that.
What is the next point we have?
Cheque of Rs. 5000 has come.
It has become plus in the cash book.
There is no entry in the passbook.
What does this mean?
Means there is 5000 plus in the cash book.
There is no entry in the passbook.
Means the balance of the cash book is up.
Below the passbook.
So take the balance of the passbook up.
We have seen that option.
We were adjusting the balance of the passbook.
Now we will see the second option.
To bring the balance of the cash book down.
Means we will bring the balance of the cash book down.
That is from how much money?
Rs. 5000.
Write in the minus column.
Rs. 5000.
Cheque received.
But not deposited.
Cheque has come.
But not deposited yet.
And the next point is absolutely similar to this.
Cheque has also been deposited.
Let's say you have.
Cheque has also been deposited.
But it has not been cleared yet.
Cheque has been deposited.
But not cleared.
Cheque has also been deposited.
But it has not been cleared yet.
Cheque has also been deposited.
But it has not been cleared yet.
What was the amount of it?
Rs. 22,022.
This will also be the same solution.
Deposit means.
You have added in the cash book.
Not clear means.
There is no entry in the passbook.
The balance of the cash book is up.
Below the passbook.
Either take the balance of the passbook up.
We have already seen that.
Or bring the balance of the cash book down.
We are seeing that now.
That's why in the balance of the cash book.
Minus has been done.
Rs. 22,000.
Okay Sir.
And Mr. Gupta has deposited.
Rs. 15,700.
And this money.
Has been plus in the passbook.
This Rs. 15,700.
Has been plus in the passbook.
Rs. 15,700.
And there is no entry in their cash book.
Means the balance of the passbook is up.
And below the cash book.
So the balance of the cash book.
The option to take up.
Will choose.
In the balance of the cash book.
Will make it plus.
Rs. 15,700.
Amount deposited directly.
By Mr. Gupta.
Amount deposited directly.
By.
Mr. Gupta.
Amount deposited directly.
By Mr. Gupta.
Last but not the least.
No, there are two left now.
The bank had credited.
Rs. 15,00.
Means that money.
Has been plus in the passbook.
And there was no entry in the cash book.
So the balance of the passbook was up.
Either bring it down.
We have seen that option.
Or the balance below the cash book.
Take it up.
That option.
Now we are seeing.
So make it plus.
Rs. 15,00.
Interest credited by bank.
Rs. 15,00.
Interest credited by bank.
Rs. 15,00.
And the bank has deducted Rs. 250.
From the passbook.
Which has not yet been deducted from the balance of the
cash book.
So minus the balance of the cash book.
Rs. 250.
Bank charges.
Deducted by bank.
If you want to see through the process.
You can see.
The money has been deducted from the passbook.
Means the balance of the passbook.
Has fallen down.
And the balance of the cash book is up.
So if you want to adjust the balance of the cash book.
Then you will have to bring it down.
You will have to choose the same option.
To bring the balance of the cash book down.
Yes sir.
The option to bring the balance of the cash book down.
Will have to choose.
Okay sir.
Now see.
Whether it comes equal to Rs. 1,50,000 or not.
Rs. 1,12,050.
Plus Rs. 48,000.
Minus Rs. 5,000.
Minus Rs. 5,000. Minus 22,000, plus 15,700, plus 1,500,
minus 250, OMG, if you can see my calculator then it is
only 1,50,000, very very good, we have reached balance as
per passbook, balance as per passbook credit, we can adjust
any balance and get it equal to other balance, we can
adjust any balance and get it equal to other balance, my
dear friends, what is this, what is this, let's make it
zero, let's make an equation, you started with 1,50,000,
you wrote 1,50,000 minus 48 plus 5,000 plus
minus 15,700 minus 1,500 plus 250 is equal to 1,20,0,50,
1,20,0,50, now if I say, if I take all these figures to
other side and change their sign, then it will be equal to
1,50,000 or not, of course, mathematics gives permission,
mathematics says, if you take all these figures to other
side and change their sign, then it will be equal to this
figure, your equation will remain the same, it will not
change, so what I did, I made it all opposite,
I made it all opposite, I made it all opposite.
From the following particulars, ascertain the balance that
would appear in the bank passbook of A on 31st December
2019. The bank overdraft as per cashbook on 31st December
2019 6340.
Why is this question important?
Because you will get to know from the first line of this
question.
What is the first line saying?
Bank overdraft as per cashbook.
And see, I had asked you to write some notes a while ago.
I had told you something in that.
What was that sir?
Let me show you.
Unfavorable balance is also known as overdraft balance.
So what does it mean?
Overdraft balance means this is an unfavorable balance.
This is an unfavorable balance.
Overdraft means bad.
This means that the bank has deposited this money on the
account holder.
6340.
This is what the cashbook says.
In the cashbook, there is a negative balance, a minus
balance.
There is not even that much money that has been spent.
It means that you have taken a loan from the bank.
So we should also see this.
Suppose you are going to do a bank reconciliation of a
company in which there is an overdraft balance. Then you
should know how to proceed in that.
That's why we have to see this question once.
It becomes important for us.
Interest on overdraft.
Let's start.
So let's see the solution to this.
See this.
Balance as per cashbook.
And this time it is credit balance.
So it will come under the minus column.
6340.
Under the minus column, we have written 6340.
Because it is a negative balance.
Then let's read the next point.
Interest on overdraft for 6 months ending 31st December
2019, 160 rupees is entered in passbook.
Is entered in passbook.
Interest on overdraft for 6 months ending 31st December
2019, 160 is entered in passbook.
Interest on overdraft balance.
Overdraft has been going on for 6 months.
How much interest is put? 160 rupees.
So if the bank people put interest and collect interest
from you, it means they deducted money from your account.
Sir, there was no money in our account.
Yes, it means they have made your balance more negative.
More debt has been put on you.
Basically, it means that they will not enter.
If there is no money in your account, they will not enter.
They will increase the negative amount in your account.
They will say that more debt has been put on you.
They have to take more money from you.
Yes, sir.
Okay.
And what is in the cash book? Now no entry.
So what are the two options? Either raise the balance of
the passbook by plusing it.
Or where the cash book has not been entered, minus it in
its balance and bring it down.
So we will have to minus 160 rupees in the balance of the
cash book.
160 rupees will come in the minus column.
In the name of interest on overdraft.
Okay, sir. No problem.
Bank charges of 400 are debited in passbook only.
Bank charges of 400 are debited in the passbook only.
Passbook only.
It means these 400 rupees are deducted from the passbook.
These 400 rupees are deducted from the passbook.
No entry in the cash book.
So you will have to do exactly the same thing.
You will have to minus these 400 rupees from here.
Bank charges debited in passbook only.
Cheques issued but not cashed prior to 31st December 2019
amounted to 11,68,000 rupees.
Cheque issued but not cashed means
Cheque issued but not cleared.
What does cheque issue mean?
Just tell me this.
Sir, cheque issue means we have given a cheque to our
creator and have minused 11,68,000 rupees from our cash
book.
Absolutely right.
But not cashed means either the creditor has not taken the
cheque to the bank and has not presented it for payment or
even if he has taken the cheque, the cheque has not been
cleared. It has not been passed by technicality.
It is still in the process.
It is only right to say that the money has not been
deducted from the passbook yet.
There is no entry in the passbook yet.
So, there are two options.
Either take the balance that has been minused in the cash
book and make it equal.
Make it plus.
Or, where there is no entry in the passbook, reduce the
balance of the balance and bring it down.
We will make it plus in the balance of the cash book.
11,68,000 rupees.
This is the plus item.
11,68,000 rupees.
Cheque issued but not cashed.
11,68,000 rupees.
Cheques paid into bank but not cleared before 31st December
2019 were for 22,17,000 rupees.
Were for 22,17,000 rupees.
22,17,000 rupees.
Cheque paid into bank means deposited.
As soon as the cheque is deposited, what do we do in the
cash book?
Sir, we make it plus.
How much money have you made plus in your cash book?
Sir, 22,17,000 rupees.
But not cleared means that it is still in the processing.
So, there is no entry in the passbook yet.
The balance of the cash book is above.
The balance of the passbook is below.
Either make it plus in the balance of the passbook and make
it equal.
Or, reduce the balance of the cash book and make it equal.
Because we are adjusting the balance of the cash book,
In the balance of the cash book, we will make it minus and
choose the equal option.
That is, we will write under the minus item.
22,17,000 rupees.
Cheque paid but not cleared.
22,17,000 will come under the minus column.
Okay.
Thereafter.
Interest on investments collected by the bank and credited
in the passbook 12,00,000 rupees. My God.
This is done.
Interest.
Interest and dividend.
Sorry.
Interest and dividend collected by the bank.
What was our reason for difference?
Here it is.
The fourth reason for difference was,
Interest and dividend collected by the bank.
Means, it is plus in the passbook.
And there is no entry in the cash book yet.
Okay, sir.
Okay.
So, we have this money.
12,00,000 rupees.
There is no entry in the cash book.
If you look at it by hand, the balance of the passbook is
up and the balance of the cash book is down.
Two options.
In the balance of the cash book, equal to plus or equal to
minus in the balance of the passbook.
We will choose the plus option in the balance of the cash
book and write under the plus item.
12,00,000 rupees.
In the name of interest on investment.
Because we are trying to adjust the balance of the cash
book.
Now pick up the calculator and see what is coming with me
finally.
Press the minus button.
6340.
Then do minus.
160.
Then do minus.
400.
Then do plus.
11,68,000.
Then do minus.
22,17,000 rupees.
22,17,000.
Then do plus.
12,00,000 rupees.
Then do plus.
12,00,000 rupees.
You would find that this much is coming out.
144,100.
We will check in the passbook and see whether this is
coming or not.
Whether this is coming or not.
So see friends. Now I will tell you about the next step
This is a cash book and this is a passbook
There are many transactions here and many transactions here
Okay? Okay sir
After all the transactions, as you have learned
The amount of your cash book and passbook balance should be
equal and the nature should be opposite
The amount should be equal and the nature should be opposite
Okay sir? But suppose the amount is not equal
The amount is not equal for some reason
So you have to do two things
First of all, you have to find out the reasons
You have to find out the reasons
For which reasons the difference is coming The reasons that
I taught you
These are the reasons for which the difference can come
Okay? How will we find that out?
We will do it like this.
We will see if this transaction is there or not Then we
will find out if it is there or not
We will see if all the transactions are there or not
And if the amount is the same or not We will do
cross-checking
We will do cross-checking
So in the previous class, as far as you were taught
What are the reasons for the difference
And in today's class, you have been taught that you have to
find out those reasons
And how will you find out that? By cross-checking
And in today's class, one more thing has been taught
Then how do we rectify those reasons?
We will do cross-checking
However, how to find out
We have not taught you the two practical questions
We have not taught you cross-checking
After cross-checking, we have taught you how to rectify
How will we teach you cross-checking?
We will make you do a question of cross-checking
And in cross-checking, when we are doing practically
Even there, cross-checking will be completely
The practice will be completely there
Do not worry about cross-checking
After cross-checking, when we have found out what are the
reasons
Because of which the difference is coming
Then how to rectify them is the main thing
If you have learned it once, then you do not have any
problem
Then there is no problem far and wide For you, my dear
friends
Okay Come on friends
Let's revise the whole chapter
Because now we are going to do it conceptually
Every business needs a bank account to operate Every
business needs a bank account
And there are many transactions with the bank Receipts and
payment
If money is being deposited in the bank Whether we are
depositing cash or money is coming from somewhere else
And what will the bank do in the passbook
The bank will send us a message of credit
That we have kept your money, take it whenever you want
Our responsibility is our liability
And whenever the money will come out of there
The same amount will be credited in the cash book
And will be debited in the passbook The bank will say that
our loan has been reduced
Now we are reducing our liability and debiting Credit is
credited at one place and debited at another
So finally, the balance of my cash book and passbook
Should always be of equal amount and opposite nature
But due to some reasons, it does not happen
There are differences
Then we find out those reasons
Why is there a difference in the balance of the cash book
and passbook
Then we cross check and find out As soon as we get the
reason for the difference
As soon as we get the reason for the difference
Then we rectify it
How to rectify it, I have given you two practical questions
And friends
Friends Keep these things in mind
Which things sir
The debit balance of the cash book is called favorable
And the credit balance of the passbook is called favorable
The credit balance of the passbook is called unfavorable
And the debit balance of the passbook is called unfavorable
Another name of unfavorable balance is
Overdraft balance
The unfavorable balance is also known as the overdraft
balance
My dear friends
Let's revise these four cases
Short cut trick
If some money has already been added to the cash book
It means
Cash book balance is up
And the balance of the passbook is down Let me see where
can I pick up
It's okay
It means the balance of the cash book is up
And the balance of the passbook is down Two options
Either bring the balance of the passbook up bring down the
balance of the cash book we will choose that according to
us and practically how we choose we will see that after
that second case there is no entry in the cash book the
amount is already plus in the passbook so this time the
balance of the passbook is up and the balance of the cash
book is down so what we will do either we will bring down
the balance of the passbook or we will bring up the balance
of the cash book completely right
case that the amount of the cash book is already minus the
amount of the cash book and there is no entry in the
passbook and the amount of the cash book is already we will
choose the balance of the cash book as well or bring down
the passbook fourth case this time the balance of the
passbook is down by any reason and the balance of the cash
book is up so we will decide whether to bring down the
balance of the cash book balance will go up, my dear
friends.
Can you tell me one example of each of these?
When will it happen that the amount will already be plus in
the cash book and there will be no entry in the passbook?
When will this happen? Can you tell me one example of each
of these?
I will tell you.
Think a little, if you can think, then very good.
Check deposited in the bank but not cleared.
Check deposited in the bank but not cleared, my dear
friends. Yes, after depositing the check, it must have been
plus in the cash book, no entry in the passbook because it
was not cleared.
Very good.
After that, there is no entry in the cash book, it has been
plus in the passbook.
Tell me an example of this.
Interest allowed by the bank.
The bank has allowed interest or direct deposit by our
customer into our bank account.
It means that money has come in our passbook and there is
still no entry in the cash book.
Third, it has already been minus from the cash book, there
is no entry in the passbook.
An example of this.
Checks issued to the creditor but not presented for payment
or not cleared.
Did we issue a cheque to the creditor? Yes, sir.
And while issuing the cheque, we minused it from the cash
book with salt.
There is no entry in the passbook because it did not reach
the bank with the cheque.
Fourth case.
When will it happen that money has been minused in the
passbook and there is no entry in the cash book? Bank
charges or interest charged by the bank.
Interest or bank charges made by the bank.
What happened to this? The bank has deducted the money, so
the money has been minused from the passbook and there is
no entry in the cash book.
There is no entry in the cash book.
So here the scenario will be like this.
Now do you know what will happen? You can get a reason for
difference to see practically.
But the case will not be out of these four.
This is the universal truth.
The case will not be out of these four.
Either the case will be that there is no entry in the cash
book plus in the passbook.
Plus in the passbook, no entry in the cash book.
Or minus in the cash book, no entry in the passbook.
Or minus in the passbook, no entry in the cash book.
There can be no case other than this.
Think about it, your brain will stop.
Think, let me also think, let's take 10 seconds.
Can there be any case other than this? Using permutation
combination, using mathematics, doing anything is not
possible.
So the reason for difference can be seen by someone else.
But you will be able to understand it, you will be able to
analyze it because it will fall in these four cases.
And then you will be able to make better decisions.
How do you have to do it? They will also be able to see and
understand by themselves.
That is why it was the benefit of going to such a
conceptual discussion.
Now you are not just ready for a few points in BRS.
See what is the benefit of buying this course from us and
learning? You will get BRS anyway.
You will search on YouTube.
How do you do BRS? You will get at least 20 videos.
Good, good means that there will be a lot of views on them.
You will get 20 videos like this.
Yes sir, but what is the matter? There is no such detail
available anywhere according to me.
I am telling you honestly.
But yes, this is when you are with us and are ready to
learn and are learning things.
If you want to stay in the same behavior that you watch a
5-minute video here and run the work, then remember friends
that there will be no growth in your life.
Growth will not happen because you have learned to do it.
How to do it? You have learned that trick.
Whether you watch a 10-minute video and work.
It is successful until those things are coming in front of
you.
As soon as something else comes, you will not eat.
The benefit of looking at the class from here is that we
have given you the strength of the concept.
Now after that you can tackle a few things.
Knowledge is coming.
You can make it 16 ounces of gold by doing more than that.
You can make it in a complete way.
Your knowledge is fine, then keep doing hard work.
Keep moving forward.
See you in the next video.
Thank you and bye bye.