Hello friends, how are you all? Sir, we are fine, you tell
me, I am fine, brother, if you are fine, then everything is
fine here, what is there to say, sir, what have you brought
today, today is a hot and spicy dish for you, tell me the
name of the dish, sir, the name of the dish is Bank
Reconciliation Statement, sir, it has become a very big
dish, it has a small name, in short, it is called BRS, and
friends, as soon as you write in your CV that you know how
to do Bank Reconciliation, your CV
a few moons, because Bank Reconciliation is a very
important topic for any business, its relevance is as much
as I praise this topic, if it comes to getting a job, then
it is a very important topic, as soon as you write Bank
Reconciliation in your CV, and your interviewer asks you a
few questions related to Bank Reconciliation, and you
answer them, then he feels that he is a useful person, do
you know what Bank Reconciliation is, it is not possible to
operate in any business without a bank
yes, sir, we know that every business has a bank account,
even if we talk about GST, then as soon as the GST
certificate comes, after the GST certificate comes, what
has to be done, after the GST certificate comes, you have
to open an account in the bank in the name of business, it
is mandatory, otherwise you will not be able to run the GST
certificate, it will lock your account, the GST department
has also made the bank account mandatory, so it cannot be
operated without a bank account, it is
possible in any business, and all the transactions through
the bank, you also record them with you, while doing your
accounting, the businessman also records it in the telly,
and the bank also records it in the passbook, yes sir, yes
sir, it is exactly like this, when it comes to the common
man, we have a savings account, so we don't make any
records with us, we trust the bank passbook, we get the
entry in it,
it is not like this in the case of business, business
people do their own accounting in the telly, and they have
a separate entry in the passbook, which is also called a
bank statement, so what happens in the cash book, the cash
book means telly, the businessman who is entering the
telly, all the transactions that are happening through the
bank of receipt or payment, should be the same in the bank
statement, yes sir, because the transactions are the same,
payment is happening through the bank
money is coming in the bank, the transaction is the same,
once you record it in the telly, and once the bank records
it in the bank statement, so the transaction should be the
same, the amount should be the same, if the amount is
different in your telly and bank statement, then there are
differences, either there is a mistake or there is a
mistake, to improve them, the reconciliation that we do is
called bank reconciliation, this is a very very important
topic, I have flashed the notes in front
you, what we will do, our process will be something like
this,
before that, we will read out this whole concept, read out
means we will understand with logic, it is a very heavy
concept of bank reconciliation, remember, but we will make
it super easy for you, you will not feel that this topic
was difficult, I will give you demos, I will tell you some
ways to remember, I will give you tips, and you will find
that this topic will be super easy, now it is difficult,
yes, in class 11, if you are a student of commerce
background, then this topic used to come in
11, sir, it used to scare a lot there too, do not worry, it
will not scare here, I am telling you, you hold your hand
and go, I agree that it is difficult to travel, listen
traveler, what do you want to hear sir, hold my hand and
go, the road is slippery, as long as you hold my hand, you
will be absolutely right, as soon as the open field comes,
I will say myself, run, jump, jump, no problem, in the
beginning, take one step at a time, when you walk with me,
in a completely relaxed way, okay
so first we will understand the whole concept, which will
take a lot of time to understand, look at the notes, 3, 4,
5, 6, 7, 8, 9, 10, we have 10 topics, we have 10 pages,
sorry, we have 10 pages, to understand it, you will have to
go through 10 pages in the notes,
there is a river of 10 pages, you have to drown, no
problem, the boat is with you, who is the boat, I am your
boat, I am with you, I will not let you drown, I will take
you from above, do not worry, okay sir, then what will we
do, after understanding the concept, after understanding
the concept, we will make it practical, that how you have
to do bank reconciliation in teleprime, now tell me one
thing, friends, tell me straight, what is the use of
studying from us, if I take you to teleprime
everyone else, then tell me straight,
then I will say, look, this is how it happens, this
automatic figure comes here, I have commanded to check it,
I have commanded to pick it up from there, the same things
will remain, it will be the same thing, if you keep
listening at that time, you will understand, but when you
go to work somewhere, you will not have any knowledge, you
have learned to press the button, you will not be able to
answer one or two interviews, what we will teach you, you
will be able to speak fluently in the
the concept will be completely clear to you, you will get
butter on teleprime, butter, this bank reconciliation was
nothing or not, you do not have to make it, you have to
explain, so are you ready, yes sir, we are ready, there is
no problem, we are very very excited, I said I am also very
very excited for this topic, let's start sir without any
delay, I said yes, let's start without any delay,
see friends, who is this, this is me, and I have opened a
business, I will not tell you the name, I cannot promote
here, I will not tell you the name, but I have opened a
business, so you take me like this, I am a businessman, and
as you said a little while ago, that sir, work cannot be
done without a bank account, so this is a bank, sir, this
is a bank or a hut, what are you talking about, when we
printed the bank inside it, it became a bank, now it looks
like a hut, so leave it, there is no
this is a bank, now if I had been so good in drawing, then
I would have been teaching you GST, BRS, TELI, I would not
have been drawing anywhere, I would have been making good
pictures by sitting on the beach, but my bad luck, my hand
was tired in drawing, what should I do, okay sir, no
problem, sir, we will run your work from this drawing,
friends, I have opened a current account in the bank in the
name of my business, there is a saving account in the name
of the person, in the name of me and
it opens in the name of the business, friends, current
account, for business, the current account has to be
opened, okay sir, no problem, now friends, this account of
mine in the bank, okay, there are a lot of receipts in it,
checks come, amounts are deposited directly, transactions
are made through Paytm on the phone, and there are a lot of
payments through this bank, I make payments through
cheques, and then I make a lot of online payments, there
are RTGS, NEFTs, and the same on your phone,
Gpay, I make payments through all these apps, yes sir, very
good, so for this, I am a businessman, it is necessary to
maintain a record of all the transactions, yes sir, why is
it necessary?
Oh brother, what did you talk about, we make teledata, we
have to make our balance sheet P&L, we have to make our
balance sheet P&L, so tell me what to do, now how will the
balance sheet P&L be made if we do not record the bank
transactions with us, the bank balance will not be visible
in it, and all the expenses through the bank are being
paid, then how will they go to P&L, it is necessary to
maintain records, and the bank also maintains records of
all these receipts and payments,
where did the money go from our account, so the bank will
tell you that you have made a payment here, you have taken
an insurance policy, you have made a payment, you bought
clothes from a certain shop of that brand, when you were
shooting photos on whatsapp in style, so will there be no
payment from there, and the bank also keeps a record of
receipts, how much money came, because the bank is the most
honest organization of the country, bank means country,
bank means government, questions
be raised on the bank, questions can be raised on the
president, but questions cannot be raised on the bank,
the bank's credibility is the highest, the bank also
maintains records, the businessman who maintains records,
records maintained by the businessman is called a cash
book, records are maintained in the cash book, means the
same thing that you make vouchers, you enter in a cash
voucher, you enter in a bank voucher, means the entry you
do in the payment voucher, you see in the telly, you enter
in the payment voucher, yes, so all the entries you pay
from the bank, that is the record of bank
kept by a businessman, and whatever you receive in the
receipt voucher through the bank, in the telly prime, that
is the record of receipts received by a businessman in the
bank, theoretically it is called a cash book, like
theoretically we used to make a cash book in the 11th class
of two columns, and the bank also maintains records, the
bank which maintains records, which makes documents are
called a passbook, there is one more name of passbook, what
is the name of passbook? passbook has one
name, bank statement, another name for passbook is bank
statement, sir, we download sometimes by putting login ID,
password, that is the bank statement, That is the bank
statement I am talking about
So friends, tell me very carefully
I just opened an account in the bank
I went and opened an account in the bank
I opened a current account in the name of my business
Because I had taken GST, so I had to update there too
And anyway, you need a bank, even if you don't have GST
You need a bank account anyway
No one will give you business
You won't have a bank account
People will pay you by cheque
You will say that we don't have an account
People will say that you are not a living being in this
world
Give the cheque back, run away from here
You won't get any work
Anyway, you need a bank
So I opened an account
And I deposited Rs.
1 lakh in it
So what will I do?
I will add Rs.
1 lakh to my records
Yes sir, absolutely
I will add Rs.
1 lakh to my records
Will the bank also add Rs.
1 lakh or not?
The bank will also add Rs.
1 lakh to my account
Because I have given them money
They are keeping the money
Because I have given them money
The bank is keeping the money
Okay? Okay sir
So the bank will say
Yes, yes, you have Rs.
1 lakh
Your account balance has increased
Rs. 1 lakh
Your account balance has increased by Rs.
1 lakh
Okay Now what will happen?
Now friends, it is like this
For example, I have deposited Rs.
20,000 more
So I will add it again to my accounts
The bank will also add Rs.
20,000 to their records
Then I made a payment of Rs.
I made a payment from the bank
So I will say from my records
That now my bank balance should be reduced
I will reduce my bank balance from Rs.
I will enter in the payment voucher
I will enter Rs.
1 lakh and Rs.
20,000 in the received voucher
And I will enter Rs.
40,000 in the payment voucher
And the bank will reduce the money from my account
As soon as the bank will make the payment
The bank will say
Come on, reduce Rs.
40,000 from your account
And you also get the message
You also get the message
And in the message, sir, the word debited is written
Whenever the money is deducted from our account
And sir, we don't understand this
That in the 11th class, the debit was told
Which is our own money
But that is gone
Still, the bank writes the debit word
And sir, we were taught in the 11th
It comes on credit
When the money comes in our account
Then the bank writes the credit and sends it
We have not understood this till now
It will come in a while
Now consider this much
The bank will also reduce Rs.
I made another payment of Rs.
Minus from here
And minus from here
Minus from here
And minus from here
Yes sir, absolutely right
So friends, for once
Sorry For once, calculate the balance of these four
transactions 1 and 20
Rs. 1,20,000 minus Rs.
How much will this be?
Rs. 70,000
Rs. 1,20,000 minus Rs.
How much will this be?
Rs. 70,000 means
Rs. 70,000
Friends I want to teach you one thing
And smart people must have understood
Means sir, we understood everything
You want to say
We are all smart
It is like this
You put it like this
To keep your mind
I have said
You understood everything
All are smart
Tell more
The thing is
The balance here
In the records of a businessman
And the balance in the bank statement
It should always be the same
Should or should not be
What is coming from the heart?
Do not think from the mind
The amount that was deposited here
It will be deposited here
How much it is deposited here
It is deposited here
The amount that is minus from here
Will be minus from here
The amount that will be minus from here
It will be minus from here
So the balance should always stay the same
After any transaction
The balance should always be the same
I said, you are right, you are right, but friends due to
some reasons, due to some reasons, there are some reasons.
Sir, what are those reasons?
They will be told later, they will be taught one by one,
that is a very deep thing.
Now, as much as I am saying, I have told you that the road
is full of slips.
Didn't I tell you?
So, why are you trying to run? Hold your hands, otherwise
you will slip.
Reasons, due to some reasons, these two balances are not
able to match each other.
Oh my God! OMG!
This happens, sir, yes.
Sir, what are those reasons? Tell us, we will tell you
slowly one by one.
What happens? Either this balance will be less than 70 or
it will be a little more than 70.
Any combination will happen.
Either there will be a mistake here or there will be a
mistake here.
Either there will be a missing item here or there will be a
missing item here.
These balances will not match each other, due to which
there will be a difference.
To correct this difference, let's make a statement, whose
name is Bank Reconciliation Statement.
Oh my God! Sir, now we understand.
So, if I say in one line, what is the meaning of Bank
Reconciliation Statement?
I have just taught you the meaning of BRS, Bank
Reconciliation Statement.
If I want to say in one line, what is the meaning of Bank
Reconciliation Statement?
So, this is it, my dear friends.
The difference between the record of a businessman, i.e.
the balance of a cash book, and the record of a bank, i.e.
the balance of a bank statement passbook,
To correct that difference, to adjust, to correct mistakes,
the statement that is made,
The name of that statement is Bank Reconciliation Statement
BRS.
Bank Reconciliation Statement BRS.
I have just explained the meaning of BRS, nothing else.
If you are able to say two lines with me with your eyes
closed, then it is good, otherwise there is no benefit.
To match the difference in the balance of the cash book and
the passbook, the statement that is made is called Bank
Reconciliation Statement.
Now see, I said you heard, you understood the thing, then
you will think that there is one more step after this.
It is not that you have to listen, write and understand,
there is a step after that too, that is to retain.
Then you have to keep that thing carefully, only you can do
that, no other person in the world can do that for you.
Only you can do that thing, now you have to retain.
If a small child, now you are doing a job in the office,
you are associated with big businesses,
Assume for example, a small child in the house, and he
takes admission in 11th or 12th, and he does not understand
the things of BRS, and he tells you that he must know, he
works in a good place, and tells a good salary, wears good
clothes, and whenever we meet, we say,
Namaste son, son, Namaste, how are you, respect uncle,
respect brother, he must know.
Come and ask you, brother, brother, what does this bank
reconciliation statement mean?
What will you do? Will you wave your hand on his head?
And tell him, son, it's chocolate day today, tell me who
will eat chocolate?
Leave BRS, BRS, I give you chocolate, I give you chocolate,
will you do this?
Or you will tell, you should know that you can tell the
child, so that he also feels, wow, what a knowledgeable man.
Tomorrow he will be associated with you, he will respect
you more, he will respect you with his heart.
Yes sir, we should tell the meaning.
So what will you tell him?
To match the difference between a cash book and a passbook,
the statement that is made is called BRS.
Now keep this written in one line, such a big meaning of
BRS, such a big topic, such a small meaning of BRS, if you
can keep it written, it's up to you, if you can't, it's up
to you.
I can say, I can explain, I can tell.
Okay sir.
Come on, friends, bank reconciliation statement.
Let's understand a little, the notes we have written.
Every business needs a bank account to operate.
Absolutely right.
Every business needs a bank account to operate.
A number of transactions in the business related to
receipts from customers, payment to suppliers, payment of
expenses, etc. are passed through bank account.
He is saying, a lot of receipts and payment, take and give,
transactions are done through the bank.
Hence, transactions taking place through bank accounts
become a very important aspect in accounting to be recorded.
Hence, transactions taking place through bank accounts
become a very important aspect in accounting to be recorded.
For the account holder.
Account holder means businessman.
The person who has opened an account in the name of his
business in the bank.
It is also important for the businessman.
And it is equally important for the bank to keep a record
of these transactions.
It is very important for the businessman and the bank to
keep a record of these transactions.
The businessman records all these transactions in a cash
book bank column.
The businessman records all the transactions in a cash book
bank column.
You can understand it like this.
A businessman records all the receipts in the payment
voucher through the bank.
On the other hand, the bank makes a passbook.
It is also called a bank statement.
For giving the same effect in its books.
and and and and see this due to errors in recording these
entries or due to timing difference due to some mistakes or
some other reasons the balance in these books get
mismatched in account holder and in bank the balance gets
mismatched due to some reasons ok a statement prepared to
reconcile the mismatched balance of cash book and pass book
on any given particular date is known as
BRS Bank Reconciliation Statement to match these balances
the statement is
BRS Bank Reconciliation
Statement no problem we are ready to understand this very
good now I will talk about debit and credit now it is time
to talk about debit and credit why? you are an accountant
you can understand many concepts without debit and credit
everything stops at debit and credit so it is important to
understand everything from debit and credit angle ok sir
let's start let me explain come here where we were writing
come here
I will change the color of pen it will be better
I made you write 4 transactions yes sir 1 lakh, 20,000,
40,000 and 10,000 friends
when a businessman deposit 1 lakh in a bank deposit 1 lakh
so the bank account the bank column he has made in his book
the bank account we make in tele access bank account under
the heading of bank account is it debit or credit is it
debit or credit let me take you to teleprime for once and
let's say this 1 lakh this is capital invested by an owner
this is my business
I have invested 1 lakh in a bank account the bank I have
opened in the name of business bank account the bank
account deposit 1 lakh we will enter it come to teleprime
create a company in my name we will create a company till
this course continues because this is our first step to
understand any topic let's do one thing let's put some
other name
let's put this name let's put this name
address
state
pin code
website
and ctrl a gst enable if you don't want to do it, it's okay
because now we are going to see the capital entry what do
we have to do by enabling gst capital entry okay sir there
is no hurry to enable gst no come to v for voucher tell me
if you remember the entry of capital investment which
voucher if you people remember please tell which voucher is
the entry of capital investment friends please tell
I would like you to tell sir it will be in the received
voucher because remove the owner there is no accounting
from the owner's angle look at the business what is
happening with the business
I gave my business one lakh rupees one lakh rupees from my
property in the name of business put it in the business
account put it in the account which is open in the name of
business so what happened this is a receipt for business
there is a payment for me but who asks me accounting is
from the angle of business payment is fine for me but this
is a receipt for business so the entry will be in the
received voucher we will press F6 what will be the credit
sir the owner's capital account will be
very good if you don't remember then go and see the capital
investment entry which was made by the company in the very
beginning you will understand all see owner's capital
account
under the heading of capital account control it and I have
told you there will be a debit in the received voucher
either cash or bank credit is the reason for the money
debit is where is the money in cash or bank press Alt hdfc
bank under the heading of bank account
put all these details and save it by controlling so you can
see
I have brought you here we are debiting hdfc bank we are
debiting our bank account yes sir we have seen bank account
is debited we can write the narration also but we are
understanding some other topic so we will write it in one
second and finish the work now you will go to your balance
sheet press Alt F1 you will find your bank balance how much
money one lakh at the rupees one lakh at rupees one lakh
yes sir now all the kids come to the gateway of telly all
the kids come to the gateway of
quickly come to the gateway of telly what you have to do
come to the gateway of telly press D for display for
account books press A and cash bank cash book
C word is highlighted you have to press this and you are
finding that your bank balance is visible sorry how much
money one lakh rupees if you enter then you will know one
lakh rupees in hdfc bank if you enter more then you will
enter the entry this is called cash book
I am writing cash book word what is this this is the
statement that comes here by a businessman who is
maintaining the record in telly as soon as he deposit one
lakh rupees in the bank he enters the voucher he enters the
received voucher to invest one lakh rupees then it is
visible here my dear friends this is the work of this cash
book this cash and bank will show only two transactions
this is the work of this two transactions of cash and bank
if we do voucher entry then how many voucher
are there purchase and sale expense and income cash and
bank and contra loan purchase and loan sale where do we get
voucher entry d for display and d for debook now here 100
entries are there but we only need cash and bank then how
will we select we need cash and bank why because we have to
match it with bank statement how many entries are there in
bank statement we have to match it if not then there is
some problem we have to find out the problem that's why we
need all transactions of bank
telly does that work telly knows that you need that
statement telly does that work telly says press d, press a
and press c and you will get bank transactions oh you will
get HDFC bank if you open any other account you will get
transactions of that this is cash book this is cash book
that's why i brought you here on telly prime through this
we saw many things and what i wanted to explain is also
done let's go back to notes
i wanted to explain the basic thing this image will be
clear in your mind till now you were seeing this cash book
as theoretical 11th image was coming in your mind now this
cash book will come in your mind
DSE, display account book this is that cash book this is
the data in businessman's telly prime as soon as i deposit
1 lakh rupees in account 1 lakh will be debit or credit
debit because for this transaction what i will do to my
bank account i will debit my bank account for this
transaction
but but when bank will deposit 1 lakh rupees in your
account no doubt they will add that money they will have to
increase the balance they will add that money and they will
not increase the balance
But this plus will mean credit for the bank.
My dear friends, the bank will credit 100000 in their books.
In their books, the bank will credit your name.
100000 rupees will be written on your name.
Businessman account credit 100000 rupees.
Why sir, why will the bank do this?
Why will the bank do this?
Should I tell you?
This entry will be on the angle of the bank.
You have just entered this.
You have entered this.
You have debited the bank.
Bank account debit HDFC to owner's capital account.
Yes sir.
You have debited the bank.
You have put a rule.
Debit the receiver.
The one who gets the money is debited.
The receiver is the bank.
That's why you have debited the bank.
And you have put the owner's capital.
Credit the giver.
The one who gave the money to the business.
Credit him.
Who gave the money?
The owner.
That's why you have credited him.
And the reason for debiting the bank is also this.
Because all our assets, our own property.
We debit them and go.
A businessman debits all his property in his accounts.
So what is the balance of the bank?
It is an asset.
Whenever we take our property, we will use it.
Yes sir.
Absolutely right.
That's why I have debited it.
Because it is our asset.
But the bank will enter here.
Cash will come to the bank.
So the bank will debit the cash account.
You will give them cash.
Cash will come to the bank for one lakh rupees.
Yes sir.
And the bank will credit your account, your business.
Whatever the name of the business is.
Pure Professionals Academy Private Limited.
The bank will credit it.
Why sir?
Credit is a liability, sir.
Absolutely right.
If you know this, then the matter is over.
If you know that credit is a liability.
Then the matter is over.
This one lakh rupees is the bank's liability.
The day this business wants.
The day the Pure Professionals Academy Private Limited
wants.
That day you can go to the bank.
And you can say to the bank.
Give us our one lakh rupees back.
And there is no need to go.
You can even say to the online bank.
We have to make a payment.
Come on, transfer one lakh rupees from here.
From our account there.
What do we do while making an online payment?
We give orders to the bank.
Come on, transfer one lakh rupees.
Any second.
From 24 hours online at this time.
Any second.
From 24 hours.
Tell me sir.
Hmm.
So this one lakh rupees is a liability for the bank.
The bank has taken one lakh rupees to earn.
This one lakh rupees has become the property of the bank.
It is very important to understand this.
The bank has just taken to keep.
The bank will return you whenever you want.
Although the bank has a lot of money.
It will take one lakh from you somewhere on interest.
But the bank still has so much money.
You want to ask for your one lakh.
He will give it to you.
The bank has come from somewhere else.
On daily basis.
So much cash is available with the bank.
That he can fulfill it by estimating the daily cash
requirement of the people around him.
Hmm.
Money is a liability for the bank.
He will have to return it whenever he wants.
The bank has kept it for safety.
So that he can earn interest by giving it to someone else.
And keeps your money safe.
Bank.
That's why you deposit in the bank.
Okay sir.
So it is very important to know this.
Whenever money will be deposited in the bank.
Cash book will be debit.
That money will be debited from the businessman.
And that money will be credited from the bank.
Now from here.
You should understand one more thing.
Why do bankers.
When money comes in your account.
Then they write the word credit and send it.
Bankers say.
Your boss.
He has given your money to us.
And we have kept it safe with us.
And we have made our responsibility.
We have made our liability.
Take it whenever you want.
If you want to withdraw cash.
If you want to make someone else pay.
Then we will pay.
It is our responsibility.
We have kept the money from your boss.
Tell us whenever you want.
It is our responsibility.
That's why bankers say.
We have kept the money from your boss.
For now.
We will credit it.
That's why bankers send that message from their angle.
We have credited this much amount to your account.
We have credited so much money in your name.
Means.
Bankers want to say.
We have taken so much money.
On our responsibility.
Take it whenever you want.
It is our responsibility.
We have kept it.
It is your money.
We accept liability.
Take it whenever you want.
Tell us more.
Take it whenever you want.
Oh ho ho.
And.
Second thing.
If you withdraw some money from there.
Or you make some payment.
Then bankers will reduce their liability.
Say yes or no.
Bankers will reduce their liability.
Yes.
When liability comes.
Then there is credit.
When liability decreases.
Then.
There is debit.
That's why bankers will do.
They will debit it.
When you will make payment.
From your account.
Or you will withdraw money.
And what we will do in cash book.
We will credit.
Because you think yourself.
Whenever you will make payment.
Then you will make some entry in payment voucher.
Now let's make an entry in payment voucher.
Let's say we make payment of 40,000 rupees.
In the name of some expense.
We pay advertisement of 40,000.
Come to teleprime.
Come.
40,000 rupees are there.
Let's make payment of 40,000.
Let's come everyone.
Come to teleprime.
Let's make payment of advertisement of 40,000.
Escape.
V for voucher.
Take payment voucher F5.
Debit.
Alt C for advertisement.
It will come under the heading of indirect expenses.
There will be services.
There is control in this.
40,000.
What will be the credit?
HDFC bank 40,000.
Bing.
Advertisement expenses.
Paid by cheque.
Okay.
Now you can see.
You have credited your bank.
What is the credit of the bank balance?
Because the money in your bank account.
That is your wealth.
That is an asset.
Asset is debited whenever it increases.
And as soon as the asset decreases.
If you use your wealth.
Then you have to credit it.
That's why we have credited it here.
When you credit it.
That's why it will decrease.
The balance of the bank in the balance sheet.
That's why it will come down.
That's why it is coming down from 1 lakh to 60.
If you debit it again.
Then it will increase.
That's why what happens in the cash book.
There is a credit.
There is a credit in the cash book.
Let's check the cash book once.
DSE.
Look at this.
How much is the balance? 60,000.
And if you go inside, you will get it all.
1 lakh debit.
And 40,000 credit.
How much is left now? 60,000.
Oh.
Okay, sir.
Come to the notes.
That's why there will be a credit here.
Now whenever it will be deposited.
Debit in the businessman's teleprime.
Credit in the bank.
Whenever it will be deducted.
Whenever there will be a payment from the bank account.
Debit in the businessman's teleprime.
And debit in the bank.
I understood the thing, sir.
Whenever there will be a payment from your account.
The bank will tell you.
Your credit balance was with us.
Your liability was on our head.
That is less.
We are reducing it now.
Because you have transferred the money from us.
That's why they write debit and send.
Debit means they say our responsibility was reduced.
Our liability was reduced.
Lack of liability means debit.
Oh.
Okay, sir.
Okay.
Are you seeing how practical this aspect is?
Yes.
This is a practical aspect.
Completely.
There is no doubt in this.
There is no doubt.
That this topic is completely practical.
This is a whole damn practical topic.
What do you want to explain beyond this, sir?
I want to explain this beyond this.
Friends.
Brothers.
Take out the net.
The total of debit and debit is 1,20,000.
Minus 50 credits.
40 and 10, 50 credits.
So the total of debit and debit is 1,20,000.
And the total of credit is 50.
Take out the difference.
Sir, the same 70.
1,20,000 minus 50, 70.
What will be the mark?
Debit or credit?
Which mark will come?
Sir, the mark will come.
Debit.
Why? Because see which is the big figure?
Debit one.
Debit and credit are minus.
1,20,000 and 50 will be minus and 70 will come.
But the mark will come which is with the big figure.
That is, debit.
Exactly the same way.
What is the total of credit? 1,20,000.
Bank is here.
And the total of debit is bank here 50.
So if there is debit and credit, then minus will come.
Here also 70.
But what will be the mark here?
There will be a mark in the bank.
Credit in the bank statement.
Because they have increased the credit by 1,20,000.
So these 70,000 will be of credit in the bank statement.
And these 70,000 will be of debit in the cash book.
In the cash book, these 70,000 will be debit.
And in the passbook bank statement, these 70,000 will be
credit.
From here we get to learn a line that
What should be the balance of cash book and passbook?
If there are no mistakes,
If there are no errors,
If there is no mismatching,
Then the balance of cash book and passbook should always be
equal amount.
70 here.
So 70 here.
And nature should be opposite.
Nature should be opposite.
Here debit.
So here credit.
Nature means debit or credit.
So the amount is equal and nature is opposite.
On one side is debit and on the other side is credit.
Here credit and here debit.
Ok Sir.
I am going to teach you the next line from the notes.
That's why I explained this line to you.
I am going to teach you the next line in the notes.
Let's try to read that line, let's read that out,
considering this scenario, whatever we have understood so
far, keeping that in mind, the balance of the cash book's
bank column and the balance of the passbook from the bank
side, after every transaction, how should the balance of
both be, amount equal and nature opposite, amount equal and
nature opposite, yes sir, we understand this, it should
come, ABCD is running, it is not difficult, it should come,
ABCD is running, just that's it, nothing
okay, so amount equal and nature should be opposite, very
good, but due to some reasons this balance does not match,
either nature is different or the amount is different, then
to correct it, we make a statement whose name is Bank
Reconciliation Statement, come let's see what is written
here, whenever a deposit is made, deposit doesn't mean that
you will go to the bank and deposit, here deposit means
that whether you are depositing cash in the bank, whether
it is an online transaction that is
deposited, whether money is coming to the bank through a
check, deposit means money coming to the bank, deposit
means that whenever money comes to your account, whenever
money comes to your account, then that money will be
debited in your cash book and the bank will credit that
money in your name, you will debit in the name of the bank,
the bank will credit in your name, yes sir, we have seen,
and whenever there is a withdrawal, whenever money will be
withdrawn, whenever there will be a payment
your account, whenever there will be a payment from your
account, then the cash book bank will be credited and what
will the bank do in the passbook, they will debit, this
thing is also understood what we have written here, now
what we have to understand further sir, now what we have to
understand further, now friends, friends, fellows, you have
to understand further, the most important things which are
somehow like this, that what are the reasons for
difference, what are the reasons for
now understand this, you have understood this, that
difference comes, mismatches, which we have to match later,
now this is to be seen, what is that and understand them
one by one that what are the reasons why there is a
difference the main reasons are presented in front of you
check issued but not presented for payment check deposited
in the bank but not cleared these two are the most
important first two are my dear friends then there is
interest allowed by bank interest and dividend collected
bank interest and other charges by bank direct payment by
bank direct payment into the bank by customers or dishonor
of a bill discounted with the bank we will see these things
one by one we have to start and understand the reasons for
differences what can they be what are their names and what
are their names number one is checks issued but not
presented for payment checks issued but not presented for
payment
checks issued but not presented in the bank for payment a
check has been given to a creditor and amount deducted from
cash book but due to any reason the creditor has not taken
that check to his bank for clearance therefore no deduction
has been made in the passbook no deduction has been made in
the passbook sir what did you say
I will explain by writing here is the businessman who
opened an account in the bank he put some money in the bank
opened an account in the bank because he knows that
tomorrow he will have to do receipts have to deposit
cheques have to clear cheques now this businessman had
purchased 30,000 rupees a few months ago from a creditor
whose name is for example
K.I.M.
sir where did you remember
I was looking at insta a few photos were coming out
I liked them right who is K.I.M.
a businessman had purchased 30,000 rupees from K.I.M.
now the payment time has come and this K.I.M.
comes to the door of the businessman and the door creaks
the businessman opened the door and saw who it was and he
was not happy at all
K.I.M. was in front of him although K.I.M.
was not happy but he was not happy so the creditor came and
said now he knows that he will have to pay so what did he
do he said it's time to pay the businessman gave him a
cheque of 30,000 rupees and the cheque comes to K.I.M.
and K.I.M.
gets the cheque yes what does K.I.M.
have to do
K.I.M. has to take this cheque and deposit it in the bank
which bank will K.I.M.
go to for example, this businessman his account is in HDFC
bank we opened the account in HDFC bank it was in HDFC bank
yes it was in HDFC bank and K.I.M.
K.I.M's account is in Axis bank for example his account is
in HDFC bank and K.I.M.'s account is in Axis bank tell me
one thing which bank will the businessman give the cheque
from his account is in HDFC bank so he will give the cheque
from HDFC bank and K.I.M.'s account is in Axis bank so
where will K.I.M.
take this cheque
K.I.M. will take this businessman to HDFC bank and K.I.M.
will go to Axis bank
I will give you 10 seconds to think in 10 seconds think and
answer in 10 seconds think and answer
4 5 6 7,8,9,10 some people some people think
K.I.M. will go to HDFC bank some people think K.I.M.
will go to Axis bank let me tell you where K.I.M.
will go
K.I.M. will go to Axis bank if K.I.M.
goes to HDFC bank then HDFC people will say to K.I.M.
your account is not open in our bank and you came to work
go to the bank where your account is how can he go to the
bank where K.I.M.'s account is not open if K.I.M.'s account
is in Axis bank then K.I.M.
has to go to Axis bank
K.I.M. will go to every Axis bank where his account is open
Axis bank will take HDFC account why they will not take
K.I.M. has opened his account
K.I.M. will bring any bank cheque
Axis bank will accept it this is the responsibility of Axis
bank to take responsibility of all cheques ok ok so what
will happen here
K.I.M. would go to Axis bank
K.I.M. will give the cheque to Axis bank for HDFC
Axis bank will accept the cheque
Axis bank will take the businessman to HDFC bank to HDFC
bank
Axis bank of K.I.M.
would go to HDFC bank branch of this businessman to HDFC
bank ok ok then HDFC bank
HDFC Bank will check the validity and technicality of this
cheque.
They will check whether it is given by our client or not,
whether the signs are matching or not.
They will check the technicality date etc.
When they will be satisfied with that, then they will
transfer the amount to Axis Bank of Kim.
Axis Bank Account of Kim.
When HDFC Bank will be satisfied that the technicality of
the cheque is correct, then they will transfer the amount
to Axis Bank of Kim.
This is the process.
It was important to know the process first.
Now I will tell you the next step.
So friends, as soon as the clearance is done, the cheque
was correct and the technicality was perfect.
Because I only signed the cheque.
Everything was right, perfect, fine.
So at the time of clearance, HDFC Bank will deduct or
deposit money from my account.
I have made a payment to my creditor.
The money will be deducted from my account.
30,000 will be deducted.
So my bank will deduct 30,000 rupees from the bank
statement.
Do you know who all talk in BRS?
I am the businessman whose cash book and my bank HDFC bank
is discussed in the middle of his passbook.
So the HDFC bank of my bank will deduct 30,000 from my
passbook.
30,000 will be added to Kim's Axis bank account.
He knows Kim and he knows King's Axis bank.
When Kim will make her own BRS, then she will check the
plus 30,000 in this Axis bank that is in my cash book or
not, everything is fine or not.
We are not talking about Kim and Axis bank.
We are talking about mine and my HDFC bank.
So what will happen to me? 30,000 will be deducted from my
passbook by the HDFC bank of my bank, the HDFC bank of the
businessman.
And then when I get the news, I will also deduct 30,000
from my cash book.
Say yes.
Yes sir.
No.
Sir, you are doing like a fool.
The red button is visible.
I pressed it.
I didn't have to press it.
You yourself are saying that we will deduct from our cash
book and you are making us say yes.
Friends, we deduct from our cash book on the same day the
day we issue the cheque to our creditor Kim.
If we wait for the bank's clearance, then it will be too
late.
We have also deducted the cheque and we are waiting for the
bank's clearance.
When it will be clear from the bank, the news will come
from there, the bank statement will come, then we will do
our accounting.
The accountant will be sitting on his hands till then.
Till then, delaying the accounting on purpose, what is the
knowledge in this?
What is the knowledge in this?
And you don't even have the proof that you have given the
cheque to the creditor.
If no one is putting the entry to us.
Put the entry.
You have issued a cheque.
Put the entry.
You have given a cheque of 30,000 to the other person and
you are not even doing an entry.
Why did you make the accountant sit there?
So, while issuing a cheque of 30,000, it is deducted from
the cash book.
And when.
And my passbook will be deducted from the HDFC bank for
30,000 rupees.
When Kim will take that cheque to the Axis bank.
Axis bank will take it to HDFC and will transfer it from
there.
From there.
Whenever HDFC will clear it, after checking the
technicality, then they will deduct 30,000.
So, it means that there is a time difference between
deducting 30,000 from the cash book and deducting 30,000
from the HDFC bank passbook.
There is a time difference.
Say yes or no.
Yes sir, there is a time difference.
I will deduct it as soon as I issue the cheque.
When the bank will clear, then we will deduct.
This time difference is called timing difference.
See, there was a word written here.
There was a word written here.
Let me show you.
Where was it?
Let me show you.
Here it is.
But due to errors in recording these entries or due to
timing differences, the balance mismatches.
So, this is the meaning of timing difference.
Entry is happening today in one book and it is happening
after some time in another book.
It takes 2-3 days in clearance.
This is called timing difference.
Due to this, the balance of the cash book and passbook can
be mismatched.
I am going to teach you that a little further.
Okay sir.
Okay.
A bank has yet not reached to the bank after taking the
check.
And the date of 31st March, which is the date the I have to
make BRS, bank reconcilation statement.
BRS means that I will take the check on 31st March and will
match the balance of the cash book and the bank statement.
Why? I have to close the balance sheet.
I have to close the balance sheet on 31st March.
Then I will check…
In my teleprime I am getting the balance weekly in the cash
book.
Is this in the bank statement and in the passbook or not?
If it is not there, then something is wrong.
Then I will take the check and will check on 31st March.
Now I had issued a cheque on March 29th, so I have entered
minus Rs. 30,000 in my teleprime on March 29th.
I have kept my bank balance below Rs. 30,000.
While Kim has not yet reached him.
Kim has not yet reached him.
Where? HDFC Bank.
In Axis Bank.
So how can the Axis Bank go to HDFC?
They didn't get the cheque.
How can it be cleared?
And when no one came to HDFC from Axis Bank, then what
cheque should they check for technicality?
And why should they pay from my account?
So there is no entry in the passbook yet.
In HDFC's passbook, in my passbook, in the businessman's
passbook, there is no entry yet.
There could be any reason.
Kim has a wedding at home.
He is not well.
He is not paying attention.
Or some other cheque has to come.
He wants all these cheques to come and go.
So we deposit there together.
There could be any reason.
Kim has not gone yet.
So the reason of difference has arisen.
The reason of difference has arisen.
What difference has arisen?
On 31st March, the day the balance sheet will be finalized,
the situation is such that the cash book has been minused
by 30,000 in Teleprime.
But because the creator did not take the cheque, because he
did not take it to his bank, which is my bank.
My bank is HDFC.
There is still no entry in its passbook.
There is still no entry.
There is no entry there.
Like before 8 o'clock at night, there is no entry on the
highway for trucks.
There is no entry in such a passbook.
So friends, the difference has come.
This is the first reason for the difference.
Timing difference.
Cheque issued but not presented in the bank for payment.
Cheque issued.
I gave the cheque.
I minused it from my cash book.
But not presented in the bank for payment.
That guy did not take it to the bank for payment.
The creator in front of me did not take it to the bank.
So there is no entry in my passbook.
My cash book.
Assume this is the cash book.
This is the passbook.
My cash book has fallen below 30,000.
Because I have minused it from the cash book.
The passbook is sitting there.
The balance of the cash book is above.
Because the cheque has not come yet.
It has not been cleared in HDFC.
The bank has not paid from my account.
And has not reached Kim's account.
Oh, the difference has come.
The difference has come.
Come on.
This is our first difference.
What to do after this, we will see later.
I am just explaining the difference to you.
How can the difference come?
What does it mean?
See friends.
Cheque had been issued to the creditor.
And amount deducted from cash book.
We gave the cheque to the creditor.
And we have minused it from our cash book.
But due to any reason.
Due to any reason.
The creditor has not taken that cheque to his bank for
clearance.
Therefore, no deduction has been made in the passbook.
No entry has been made in the passbook.
No entry has been made.
Okay, sir.
There has been no entry in the passbook.
Okay? Okay, sir.
Come on, friends.
So I hope.
You must have understood the point.
What are the other differences, sir?
See friends.
What are the other differences?
That is.
Cheque.
One minute.
Deposited in the bank but not cleared.
This is just the opposite of this.
We will see in the next clip.
Interest allowed by bank.
Do we have an account in the bank?
Yes, sir.
Do we get interest on the balance?
Yes or no?
Yes, sir. We get interest on that.
So, have you ever received a call from the bank for
interest?
The bank said, come on, take your interest ready.
No, they just put it in your account.
You get to know when you get an entry in the passbook.
So this can also be a reason for difference.
This can also be a reason for difference.
Absolutely right.
Interest and dividend collected by bank.
I am giving an overview.
In the coming classes.
What will we do?
Sorry.
I am giving an overview.
What will we do in the coming classes?
Interest and dividend collected by bank.
You have purchased a share or a diventure in a company.
The company pays the dividend and interest payment.
If you have purchased a share, then the dividend payment
will come.
If you have purchased a diventure, then the interest
payment will come.
It will come directly to your account.
Now you don't know.
Did you get an entry in the cashbook?
No.
Is there a difference?
Yes, there is.
Direct payment by bank.
The bank paid the premium of your LIC policy.
The payment was made directly from your account.
You don't know now.
For example, you don't know now.
Is there a difference?
I just want to show you how differences are created.
Okay, sir.
Direct payment into the bank by the customers.
We had a customer.
We had to take money from him.
He went, filled a slip, deposited it and deposited the
money in our account.
Sir, anyone can deposit money in anyone's account.
Anyone.
If you want to withdraw money, it is necessary to be in the
account holder's bank and sign it.
But anyone can deposit money in someone else's account.
He went, deposited the money and came back.
And the entry was made in the bank.
The money was deposited in our passbook.
The bankers credited and increased their liability.
The bankers said, your customer gave us the money.
We make our liability.
But now there is no entry in our cashbook.
For any reason.
There is no entry in our cashbook.
There will be a reason for difference.
Sir, what could be the reason for not having an entry in
our cashbook?
We don't know now.
The bankers don't call us on every transaction.
That your customer has given us money.
You also enter in the cashbook.
We get to know that at the end of the month when we get the
bank statement.
Or when the person calls us and tells us, then we get to
know.
Then we will enter there.
Or when his bill reaches the accountant, then there will be
an entry.
Received voucher.
The cash that we make manually.
So it may take time to enter.
For example, the accountant is on leave.
The accountant has not yet entered on leave.
There can be any reason.
Yes sir, yes sir, yes sir.
Now this word is written.
Direct payment into the bank.
So understand the payment word.
That payment is being made from our account.
Into word is important.
Into the bank.
Means someone has made payment in our account.
Means it is received for us.
We have money.
Ok sir, ok.
We have money in our account.
And dishonor of a bill discounted by bank.
This is a big problem.
I will teach you this slowly.
We will see this later.
So today's discussion will be up to here.
I hope you will understand the things.
And as I say at the end of every class.
Similarly, at the end of this class, I will say.
Please, please, please, please.
Revise this concept.
It will be a little heavy going forward.
If you do not do revision, then.
I said I will make it easy.
And my opinion is this.
I have made you understand in pure Hindi.
Absolutely.
At the basic level.
I have also put you on the telly.
I have also made you see the cash book on the telly.
Ok.
Now practical.
And theory and concepts.
We are going together.
Absolutely.
That's why please.
Revision.
Absolutely.
Up to the mark.
There should be no shortage in revision.
Then it will be fun in the next class.
So see you in the next lecture.
Until then.
Thank you.
Bye.
Bye. Bye-bye and take care my dear friends.