Hello everyone and welcome back to another spicy lecture
related to the topic bank reconciliation statement.
We have talked a lot about BRS in the previous class, we
will continue the discussion in this class.
See friends, what did we learn in the last class?
Sir, we talked a lot, we saw the meaning of BRS, how are
debits and credits, we saw that in the cash book and
passbook, who makes the cash book, who makes the passbook,
we also saw a reason for difference, we found out that the
balance of the cash book and passbook should be of equal
and opposite nature after every transaction, the amount
should be equal, the nature should be opposite.
At one place there is a debit, at another place there is a
credit, at one place there is a debit, at another place
there is a credit, but due to some reasons, the balance of
the cash book and passbook does not match with each other.
In order to correct these reasons, in order to match the
balance, the statement that is made separately, its name is
BRS.
And what are the reasons, sir, because of which the balance
does not match?
We learned one reason with you, cheques issued but not
presented for payment.
We had a creator, someone's loan was hanging on our head,
he came to us, he said, bring a cheque, we gave him a
cheque, issued it, that Vijay, take money from our account,
and as soon as we issued the cheque, we deduct the amount
from our cash book, you saw, we pass the entry in
teleprime, we credit the bank in the payment voucher, that
brother, money is going to be deducted from our account, we
do not wait for clearance, that there will be clearance
from the bank, there will be news, there
be a letter, there will be a letter, no message, no
message, where did you go, then we will enter, nothing like
that, we enter on the same day, but the creditor has a
wedding at home, he has not gone to his bank with that
cheque, he goes to his bank, he has not gone there with the
creditor, so the creditor has not come to our HDFC, it has
not been cleared yet, money has not been deducted from our
account, so the entry in the passbook has not been done, so
the entry in the passbook has not been
but the cash book is minus, so what difference will it
make, tell me, sir, the balance of the cash book will fall
down, the balance of the cash book will look up, absolutely
right, absolutely right, this is what we saw in the
previous class, now we will increase the discussion, cheque
deposited in the bank but not cleared, let's understand
this, what is the name of this, cheque deposited in the
bank but not cleared, my feet do not touch the ground, this
is how it is, sir, you started singing
and the pad started moving, it stopped, now I will not sing
songs again, my bad luck, cheque deposited in the bank but
not cleared, see friends, it is very important to
understand this, if on these lines, on their meaning, the
topic that is going on in front of you, if you put 10
minutes, then you will be relaxed for the rest of your
life, and you will not invest for 10 minutes, and you want
to know the direct treatment, then you will be worried for
the rest of your life, so I am saying that
is a very good investment, these are the terms that are
confused, these are the things that make BRS difficult, we
have already understood them and are going on very well
conceptually, so which thing will bother us, nothing can
bother us, take this, this is me, and this is a person whom
I have borrowed, what is the name of this, a person, a
person, although you can tell, whom we borrow, what
name do we give to that person, what name do we give to
that person, debtor, very good, we give the name of debtor
to that person, okay, no problem, I sold it to him, I sold
it to him, suppose 40,000 rupees, 40,000 rupees, he said
okay, take this, I will pay you, whether it is a cash sale,
he is giving a cheque along with it, or a while ago we sold
it to him, now he is giving us a cheque, finally, the
important thing is that he is giving us a cheque of 40,000
rupees and saying bye bye, namaste,
account is clear, I bought a cheque of 40,000 from you, I
gave you a cheque of 40,000, namaste, bye bye, we said
okay, why, because we know that the cheque has come, we
will deposit it in our bank and money will come to us, what
is the problem, later sir, if this cheque is not clear, we
will see later what is what is not, now you walk straight
on the road, let the shortcut remain, that a shortcut comes
out of the jungle from here, which is directly available on
the highway, let it be, have you
any movie that the shortcut has been successful till date,
get stuck in the jungle forever, so it is necessary to walk
step by step, okay sir, now where was your account, which
bank was my account in, smart kids, remember and tell, sir,
your account was in HDFC bank, absolutely right, I went to
HDFC bank and I made this cheque deposit, I made this
cheque deposit, as soon as I make the cheque deposit, I
come home
by taking a chance and I add 40,000 rupees to my cash book,
I pass the entry of 40,000 rupees, I do not wait for this
cheque to be cleared or not, it will be cleared, money will
come in the account, they will go to the bank, my work was
to deposit, I deposited and passed the entry of 40,000
rupees, so this is the meaning of cheque deposited in
the bank, this is the meaning for cheque deposited in the
bank, sir, what are the last three words, but not cleared,
didn't I tell you yesterday, when you deposit the cheque
here, then this cheque has been given to you by this
debtor, now these HDFC people will go to the bank, which
bank's cheque has been given by the debtor, which bank has
this debtor's account, from there they will check the
validity and technicality of this cheque and then the money
will be transferred to my account, so it
time, normally it takes 3 days, so let's suppose on 29th of
March, I deposited the cheque and in my cash book
I added how much rupees, 40,000 rupees, I deposited the
cheque and in the cash book
I added 40,000 rupees, okay sir, no problem, but friends,
on 1st April the cheque was cleared somewhere and the bank
people added in my passbook, my HDFC bank people added
40,000 rupees on 1st April, so if we talk about 31st of
March, what is the position, what is the situation on 31st
of March, the cash book has become 40,000 plus, but there
is no entry in the passbook yet, this is the position on
31st of March, so if you say, the cash book is up this time
and the passbook is down, there is a
there is a difference, why there is a difference, because
of the timing, the timing is different, I will make it plus
today, on 29th of March, the day I deposit the cheque, the
bank people wait till the money comes from the front, how
do the bank people deposit the cheque on the day I
deposited the cheque in my account, they will deposit the
money only after it is cleared, that's right sir, so
because of the timing difference, this mismatching comes in
the balance of the cash book and the
let me show you how we pass the entry in the cash book, we
pass the entry in the cash book on the same day, and there
will be no entry in the passbook, see it is the same bank
to debtor entry, bank to debtor entry, which we do in
teleprime, let me show you, let's sell it, then let's
receive its entry, okay, and then let's see how it will
reflect in the cash book, okay, okay sir, let's see, it
will take 2 minutes, what is the problem, the process
should not break, let me flash teleprime once on
screen, wait a bit, okay, it is flashing,
okay, create a company as soon as possible, what should we
name it sir, cheque deposited in the bank but not cleared,
cheque deposited in the bank but not cleared, controlling,
controlling, okay, let's sell this person first, F8,
voucher F8, let's name the debtor first, let's name the
debtor first, let's name the debtor first, let's name the
debtor under sales account.
Let's sell the watch.
It's a sale of 40,000, isn't it? Yes, sir.
There is no GST. 4 pieces for Rs. 10,000.
It will give a warning, telly, no problem, you go ahead.
We don't have to pay attention to the sale, we have to pay
more attention to the received entry.
Now he is giving us a cheque on the 29th.
So what will we do? We will open F6 Received Voucher.
We will credit Tarun.
Tarun's account is being cleared for 40,000.
We will tell Tarun to go ahead.
When we sell Tarun, we debit it and make it our debtor.
When we give him the goods.
Now he is giving us money, so clear his account by
crediting it.
Tell him, okay, thank you, go ahead.
And your bank account will be debited.
HDFC bank account.
Okay, okay, sir.
Now you will escape and come outside the Gateway of Telly.
And here you will press D, A, C.
So you will see that your cash book has a debit of 40,000
in the bank account.
It means that you have made a debit of 40,000 today.
And as soon as you see your passbook, you will have a bank
passbook in your hand.
So you would find that this entry of 40,000 is not visible
in it.
You will sit to match the balance on 31st of March.
31st of March, the last day of the year.
So you would find that I am getting 40,000 rupees plus in
Telly Prime.
But this entry is not visible anywhere in the passbook.
So this is your reason for difference.
We will adjust this in BRF, in Bank Reconciliation.
Okay, okay, sir, okay.
How to do that, we will see later.
Now we are going to know the reason for differences.
We are concerned about reason for differences at the moment.
I am taking you through the entry because you will do Bank
Reconciliation when the entry is done in Telly.
Suppose I will not show you the entry of 40,000 in the bank.
Then you will do Khak Reconciliation.
Why sir, tell me.
Then there is no entry in your cash book and no entry in
the passbook.
The balance is a match.
The entry should be reflected in your cash book.
If it is not reflected in the passbook, then the reason for
difference will be made.
Then what is the need of Bank Reconciliation if you are not
doing it in your cash book.
That is why it is necessary to show the entry in Telly
Prime.
It is necessary to make an image in the mind.
The picture should be clarified.
Hmm, the thing is fine, sir, we understand.
And when we see the entire Bank Reconciliation, then these
things will help us a lot.
We are not taking much time.
Yes, yes, yes, sir, yes, sir, yes, sir.
We got it, sir.
Good.
Take this.
Second reason for difference.
Here it is.
Check deposited in the bank but not cleared.
A check has been received from a debtor and also deposited
in the bank.
A check has been received from a debtor and also deposited
in the bank.
A check has come from the debtor and we deposited it in the
bank on 29th.
At the time of deposit of check in the bank, the amount has
been added in the cash book.
We have entered it in our Telly Prime.
Debit has been done in the cash book.
40,000 rupees.
But the check is yet in clearance.
The check is still in the process of clearance.
It has not been cleared.
The money has not come to our account in the bank.
The bank has not added it in our passbook.
Therefore, no additions are made in the passbook.
The bank has not added anything in the passbook.
This is your reason for difference number 2.
Sir, check issued but not presented in the bank for payment
means
We gave the check, immediately minused it in our cash book,
credited it.
It has not been minused from the passbook.
The cash book has fallen down.
The passbook is up.
Absolutely right.
And sir, check deposited in the bank means
We got the check, we deposited it in the bank.
We added it in our cash book.
It has not been cleared.
There is no entry in the passbook.
The balance of the cash book is up.
The balance of the passbook is down.
This means that both have become opposite to each other.
Absolutely right.
Both have become opposite to each other.
Both are the opposites in themselves.
Check issued but not presented in the bank for payment and
check deposited in the bank but not cleared are opposite
transactions of each other.
Okay, sir.
Let's move to the third point.
To our third point, our third point.
It will be the topic of today's discussion.
Now, this is our third point.
On your computer screen.
Interest allowed by the bank.
Do you know one thing, friends?
What is it, sir?
Whoever has an account in the bank.
All the money in the locker of every bank will be mine.
Did you see?
Whoever has an account in the bank.
Whatever is the balance in that account.
Call it annually.
Call it annually or semi-annually.
It happens annually.
The bank provides interest on it.
The bank says,
If you had not given this money to us, and deposited it in
your account in the bank, and if you had given it to
someone else, then you could have earned some interest from
this money.
But you gave it to us.
We are very grateful to you.
We will give you the interest that you could have earned
from someone else.
Bank nominal rate of interest.
Some banks give nominal rate of interest.
Some banks give good rate of interest.
There is no such thing.
So, you have a rate of interest.
With this, the amount of interest is provided to you.
Yes, sir.
I have told you earlier also.
Have you ever received a call from the bank?
The bank has said,
Hello, Mr. Account holder.
Or Ms. Account holder.
The money deposited in your account.
This much interest is made for that.
If you want, you can send the money home.
Or you can come and take it yourself.
Have you ever received a call like this?
No, sir.
I have never received a call like this.
But you get interest on that balance.
Absolutely, sir.
Do you know what the bank does?
The bank adds that much amount in your account.
At the same time, they enter it in the passbook.
And with the amount of interest, they increase your balance.
At the same time, they enter it in the passbook.
And with the amount of interest, they increase the balance
of the passbook.
They increase it.
Okay, sir.
Now, this is called interest allowed by the bank.
That means, on our balance, the interest that the bank has
given us, this is called interest allowed by the bank.
Okay.
Now, this is my cashbook of the account holder.
And this is the passbook of the bank.
This is the passbook of the bank.
So, what has happened?
What has happened?
The money has increased in the passbook.
Now, there is no entry in the cashbook.
Why? Why? The bank doesn't call us to put money in the
account and take it if there is interest.
They enter the money there.
You know that.
When you get the bank statement at the end of the month,
you see from there.
And basically, this point happens at the time of bank
reconciliation.
Because we never know when the bank has given the interest,
on which date, and how much.
Right? So, we see that from the bank statement.
And after seeing from the bank statement, when we come to
know that there is so much money in the passbook and not in
the cashbook, then we come to know that this is the reason
for the difference.
This is the reason for the difference.
The interest money has been added to the passbook.
But we don't have any entry in the cashbook yet.
You put the entry after seeing from there.
When you look at your bank statement and see how much money
the bank has put in the interest in your account, then you
put the entry to yourself.
Okay, sir.
Okay.
So, let's say you saw
What did you see?
The bank has added 2,000 rupees of interest to the passbook.
You still don't have any entry in the passbook.
So, you will say that the balance of the passbook is up.
The balance of the cashbook is down.
I have a difference.
This is the reason because of which the last balance of the
cashbook and the passbook can be different.
This is absolutely right, sir.
There can be a difference.
Now, some people have questions in their minds.
Some people are saying,
Sir, tell me what to do next.
Sir, what will we do to correct this mistake?
Some people have also decided this.
Some people are saying,
We will put an entry in our cashbook.
We will go to our teleprime in the received voucher.
We will put a debit in the bank account of 2,000 rupees.
Because 2,000 rupees have increased in our bank account.
And this interest is our income.
So, according to the rule of credit all income and gain, we
will credit the interest account.
And we will create the interest account under the heading
of indirect income.
With this, my mismatch balance will be balanced.
Some people are thinking like this.
Okay.
So, friends, it is like this.
What will be the adjustment of this thing?
And how will we play matching?
This is a matter of later.
We will see all this one by one.
That's what I am trying to explain to you that on which
track we are now.
The train on which we are travelling now will take us to
the station where we will get the car.
we will get to know the reason for which there is a
difference and why there is a difference.
We will catch the next train and change from there.
That train will take us to the station where we will get to
know how to rectify the mistake.
How to make the reconciliation.
That second train will teach you.
Okay sir.
Okay.
Some people are saying that they will enter in the cash
book.
We will see that later.
Okay sir.
Sir, rhyming is done.
I have made rhyming.
Do you think so?
Interest allowed by the bank.
Interest on the amount deposited in the bank account is
credited by the bank to our bank account.
Therefore, amount has been added to the passbook.
But no additions are made here in our cash book.
We have not made any entry in teleprime.
That is why this position is formed.
Money has been added in the passbook.
But no entry has been made in the cash book.
Amount is added in the passbook.
There is no entry in the cash book.
That is why there is a difference.
Let's go sir.
Take us on the journey to the next point.
I said let's go.
Let's go on the journey to the next point.
Interest and
Dividend collected by bank.
Interest and Dividend collected by bank.
Let's try to understand this.
This is me.
How many times will you make your face today?
I don't know myself.
How many times do I make my face?
This is my bank account.
Let's do one thing.
This is my bank account.
And this is a company.
This is a company.
C company.
Yes.
What have I done?
Let me tell you the inside story.
I have bought shares and debentures of this company.
I have bought shares, preferentials and debentures.
Which company is it?
I can't disclose the name of the company.
Try to understand.
I told you that I have bought shares and debentures.
Be happy.
I can't disclose the name of the company.
Okay.
Why would I buy shares and debentures?
What will I get by buying shares and debentures?
Why does a person invest in a company?
When shares are bought by a company, the company gives a
dividend to the shareholder in return.
The company gives a dividend to the shareholder in return.
Do you know what it means to buy shares?
You have invested in this company.
You have become the owner of this company.
You will get a share in the profit earned by this company.
When a shareholder invests in a company, the company gives
him a share in the profit in return.
This is called a dividend.
Dividend means the share of this person in the profit.
It is seen on the basis of investment.
What is the total profit according to the investment I have
made?
My share is deducted accordingly.
I have also bought debentures of this company.
What does debenture mean?
I have given some more loan money to this company.
Sir, you had given a dividend in the investment.
What does it mean?
What does it mean to give loan money?
The money I have given to the company and said that I am
giving it as an owner.
That is my capital investment.
It makes me the owner of that company.
The owner gives me the right.
If the profit is more, then my loss is less.
If my money is lost, then my danger.
This is called investing in a share and becoming a
shareholder.
But I have given some money to the company in return of
which I have said that earn more profit, earn less profit.
In return of the money I am giving,
I should get interest at a fixed rate every year.
Such an investment is called debenture.
Investing in danger is called investing in shares.
You will get a fixed amount of interest without any danger.
Such an investment is called debenture.
Why will anyone buy a share in danger?
Debenture is good.
Think about it.
If the company does a very strong business, then this
person will cry when he will buy a debenture.
He will think that if he had bought a share, where would he
have reached today?
Because if the debenture holder gets more profit, then also
the rate of interest will be fixed.
This is the thing.
So friends, what happens is, this company gets interest on
debenture.
I get interest on debenture.
So the shares that I have bought,
I get dividend on them.
The debentures that I have bought,
I get interest on them.
The debentures that I have bought,
I get interest on them.
No problem at all.
Next thing, what did the company do?
This HDFC bank account of mine,
HDFC bank account, sorry, I keep saying that it was my bank.
No, it is not our bank.
It is our bank's account.
This HDFC bank account of mine, the company puts the money
of dividend and interest in my account.
Now, the company does not give cash.
If the company calls you and gives you cash, the company
says, come shareholder, come debenture holder, take this
interest.
So tomorrow, you don't know, you are dishonest, you will
commit a sin, you will steal, you will give cash to the
company, you will not get any proof, you will go and ask
for money again, you will file a court case, they did not
give us money, what proof did the company show that they
paid you?
Where did the company go?
They paid the dividend.
That is why, the money of interest and dividend has reached
your bank account.
The money of interest and dividend has reached there.
Means, for example, 20,000 rupees.
So I can say, in my passbook, 20,000 rupees have been added.
In my passbook, 20,000 rupees have been added.
Absolutely right.
But in my cashbook, but in my cashbook, there is no entry
yet.
There is no entry yet.
Sir, first tell me why there is no entry?
Sir, you think a little more technically.
Sir, as soon as the money is deposited, in the bank account
of HDFC by the company, a message will come on your mobile.
Money will be deposited, a credit message will come on the
phone, and it will be received in your account.
Yes, yes, yes, absolutely.
So sir, you will get to know immediately.
And you should make an entry.
I will not show my message to the accountant.
And I will say, this message has come,
I will pass the entry on the basis of this message.
There will not be a general entry on the basis of the
message in Teleprime.
Okay.
And I am somewhere, the accountant is somewhere.
There is no daily meeting between the owner and the
accountant.
There is no daily meeting.
The accountant keeps working by himself.
The accountant's job is to find a business, find a client,
go to places.
So the owner stays outside.
He will keep playing by forwarding messages.
So how will he handle meetings with clients?
How will he bring a new business?
The accountant enters only when he gets a statement from
the bank.
And in that, he will see the entry that yes, the bank has
put so much money for this thing.
Interest and dividend money have come.
The accountant enters from there.
If the owner is sitting to trouble, then the owner has done
the business.
And one day the transaction will be over.
Because there will be no business.
Then they will see each other's faces.
We have been doing accounting.
As soon as the situation came, there was no need for
accounting.
We have done the accounting.
The work is over.
Okay.
So do you see this reason for difference?
Yes.
What will happen with this?
The balance of the cash book will go up.
How much money?
The amount of interest from our investee has been received
by the bank.
Or the amount of dividend on shares purchased has been
received by the bank.
Investee means where we have invested money.
Investee means the company in which we have invested money.
We have got interest from that company and it has been
deposited in our account.
We have got dividend and it has been deposited in our
account.
Additions are made in the passbook.
Because of which additions have been made in the passbook.
Additions have been made in the passbook.
There is still no entry in the cash book.
This is the scenario.
There is an amount plus in the passbook.
There is no entry in the cash book.
Because of this, there is a difference.
How many reasons for difference have we done?
Sir, we have done four reasons for difference.
Four reasons for difference.
For once, let us revise these four reasons for difference.
Why sir?
Because I know that things will get heavy in future.
I know it very well that things will get heavy in future.
It is my duty to inform you and it is your duty to
understand that yes, revision is necessary.
Because it is the same thing.
Sometimes plus, sometimes minus, sometimes up, sometimes
down.
So there can be confusion in the mind.
It is necessary to do revision. Let's go with it now.
The first point was
Check issued to the creditor, but not presented for payment.
He cut the creditor's check and minused it from the cash
book with tears in his eyes.
But the bank has not reached it yet.
So the money has not been deducted from our passbook.
Cash book balance is down and passbook balance is up.
The reason for the difference is number one.
check deposited in the bank but not cleared we got the
cheque from our debtor, we deposited it in the bank and
while dancing we added it in the cash book but now the
cheque is not cleared, no entry in the passbook the balance
of the cash book is up and the balance of the passbook is
down, reason for difference number 2 number 3, interest
allowed by bank the money we have deposited in the bank we
added it in our account and the passbook is plus the
passbook is up, no entry in the cash book, that
thing is down, reason for difference number 3 number 4,
interest and dividend collected by bank, some money came in
the bank some money came in the bank, interest and dividend
the company whose share we had bought, we deposited it the
balance of the passbook is up, the balance of the cash book
is down, reason for difference this is number 4 let's come
to number 5 and this is also very famous this is one of the
famous reasons why there is a difference, interest and
other charges by bank interest
other charges by bank this is also a very famous reason for
difference bank has deducted certain amount from our
account and effect given in passbook but no entry has been
made in cash book bank has deducted some money from our
account and we have added its effect in the passbook and no
entry has been passed in the cash book no entry has been
passed in the cash book this is the passbook this is the
cash book, you know bank collects some charges from us bank
makes your account maintains your
gives you locker facility, keeps your money safe clears
your cheques to another bank gives you this facility these
are fixed annual charges which is called bank charges and
the way bank doesn't call you to give interest same way
when you have to deduct money they don't call you to deduct
money let me show you my phone many times it is written
annual charges has been deducted from your account bank
will deduct from our account and we deduct that amount from
your account and our loan is over
is written amount has been deducted from your account and
no phone call is made so entry is made from the passbook
and money is deducted from the passbook in the name of bank
charges
I can't write bank charges in short form
I know you are smart so this much money has been deducted
from the passbook no entry in the cash book this is the
reason for difference number 5 interest and other charges
by bank in other charges, you told locker facility, cheques
now why will it charge interest you told bank gives
interest now you are saying bank takes interest you have
made Singham movie bank does both if overdraft balance is
gone you have used more money bank gives overdraft facility
you can use more money this is cash
facility in return, you have to pay interest if you have
used bank money you will get interest interest will be
deducted from your account if there is no entry in the cash
book this is the reason for difference there is minus in
the passbook and no entry in the cash book next point
direct payments made by the bank direct payments made by
the bank bank has made some payments from our account and
effect given in passbook but no entry made in cash book as
per our directions only bank has made some
from our account as per our directions only as per our
directions only we told bank to make these payments and
effect given in passbook as soon as bank made payment bank
deducted money from passbook but no entry made in cash book
no entry has been made in the cash book no entry has been
made in the cash book so far ok sir let me explain this
let's say I have an LIC its premium goes annually and I
have given instruction to the bank that LIC company should
make annual payment from my account so
bank does as per my instructions bank deducts money from
passbook and premium is paid and no entry has been made in
the cash book and no entry has been made in the cash book
and no entry has been made in the cash book so what we do
we make it reason for difference direct payment by the bank
on our instructions next 7th point direct payment into the
bank by the customer don't get confused payment means money
will be deducted from our account word is into the bank by
the customers our customers
deposited money in the bank our customers have deposited
money in the bank so what will happen balance of passbook
will go up we don't need to have an owner to deposit money
I said wrong we don't need to have an owner to withdraw
money we need an owner so owners deposit money in the bank
and it will go up and it will take time to enter This is
the reason for difference number 7
Now you are in a hurry.
Yes, because the matter is in your hands
The customers have deposited some amount in our bank account
And hence, passbook is added up by the bank
The customers have deposited some amount in our bank account
Because of which the passbook has gone up
The amount has been added in the passbook
But no intimation is available with the account holder yet
We don't know anything yet
That's why there is no entry in our cashbook
There is no entry in our teleprime Because of which the
cashbook is there
The passbook has gone up
The reason for difference is
Balances have been mismatched
My dear friends This is number 7
Let's come to the 8th point
Dishonour of a bill discounted with the bank
Dishonour of a bill discounted with the bank Friends, for
this
First of all, you have to understand the meaning of bill
discounted with the bank
When you understand the meaning of bill discounted with the
bank
Then you will understand the meaning of dishonour
Then I will tell you the meaning of dishonour of a bill
discounted with the bank
Look friends
Come carefully
This is a very interesting point
Dishonour happens many times
Check has not been cleared
Check has bounced
You have already entered the deposit in your teleprime
In the cashbook
So what happens after that
So that thing is very important
This is me
This is my debtor
Let's take the same example
Which we were talking about a while ago
I have sold it
For how much?
For 40,000 rupees
I have sold it for 40,000 rupees
And what did this debtor give me in return?
This debtor gave me a check in return
The debtor has given me a check
What do I do?
Now look carefully friends
I make a little change in this
To explain this point
I have to make a little change
The sale date is
Let's suppose 1st April 2022 And the check that I have been
given
The date on this is 2 months later 1st May 1st June 1st
June 2022
The debtor was buying things from me
And was asking me for a loan for 2 months
He said, I'll pay you after 2 months.
He was an old friend of mine, so I couldn't refuse him for
a loan.
I said, okay, no problem.
He said, I'll give you a loan.
He took his stuff and left the office.
As soon as I said yes for the loan, I called him back.
I said, listen, he's taking his stuff, okay.
He's taking a loan, I'm not refusing, okay.
But man, give us this thing in return.
Look, he's a good friend, but not in business.
Stay away from business.
No friendship.
So I told him, give it in return.
That you'll pay me after 2 months.
I should have some proof.
You take the stuff and leave.
Then I wander around.
That I've done something for you.
I've given you some stuff.
Then you refuse to pay me.
Then I'll go around the court.
And I won't have any proof in court.
That I gave you stuff.
Because I didn't take anything from you in return.
That's why, friends.
I tell him, brother, you give me a cheque.
Put the date on it two months later.
Put the date two months later.
He puts the date two months later.
Because if you put the date today.
Then I'll reach the bank today.
And I'll get the money from his account today.
Or it will take a day or two for clearance.
I'll get the money in two or three days.
Then I told him, give him two months.
But he's asking for two months.
He's asking for two months.
That's why I said, give me the cheque.
And put the date two months later on the cheque.
This will give me security.
That yes, you gave me the cheque.
You won't run away.
I'll take the money.
And if there's no money in your account.
Then I'll be able to file a cheque bounce case.
By going to your bank on the basis of the cheque.
I'll be able to file a cheque bounce case.
I'll have some return proof.
I'll have some evidence to file a case.
And if it's clear, it's okay.
Then there's nothing to worry about.
Then I'll have fun in life.
Then there's no problem.
So he said, okay.
Brother, I'll give you a cheque of June.
He's requesting so much.
So take it.
Take a cheque of June.
Now, friends, what happens?
Only two days have passed.
For example, only one or two days have passed.
And in my business.
Suddenly.
I need funds.
In a very bad way.
There are ups and downs in business.
We may need money at any time.
I suddenly needed funds.
I also tried to take loans in a couple of places.
No one gave me a loan.
It is not available in the market at the moment.
For example.
And I asked a couple of people.
My old debtors.
They were coming for a while.
They said, man, our hands are also tight.
Stop a little.
We can't do it to anyone.
We can't force anyone to give us money.
We have to run the business ahead.
We have to sell that guy next time too.
We can't mess with debtors.
We can't fight with debtors.
In the end, I got tired of losing.
I called this debtor.
I called this guy.
He picked up the phone.
I said, hello, I am speaking.
He said, yes, tell me how are you?
I said, good friend.
But I'm in a little trouble.
He said, why?
What happened?
Tell me.
I said, man.
I need funds suddenly.
In the business.
And your cheque.
I have it.
It's two months later.
So can you pay me today?
I agree.
I gave you two months.
You asked me for two months.
But I need a little suddenly.
Will you please help me out?
Can you do this?
Take this cheque.
And now make a date for the new cheque.
Make me a cheque for the new date.
Can you do this?
Now that debtor has joined hands.
He joined his hands on the phone.
He cut the phone.
Video call.
And video call.
And he joined his hands after the video call.
And he said, brother, sorry.
Can't do it.
If this was the case.
Then why would I ask you for 2 months?
He said this.
If this was the case.
Then I would have paid you immediately.
Why for two months?
I don't have money.
Otherwise, even I don't need a loan cap.
Even I did not want to keep your loan on my head for two
months.
But I don't have money.
And I will understand his situation.
I will have to understand.
Because he asked for 2 months.
That's why he didn't have money today.
If he would have been there, there would have been no
problem at all.
He doesn't have money today.
This is the problem.
Now what should I do?
Who is the support of the loser?
The support of the loser is Baba Bank.
The support of the loser is Bank Pyara.
We went to the bank.
What do we mean?
I go to my bank, HDFC bank, where my account is.
And I tell my dilemma to the manager of the bank.
The manager of the bank says,
This is BM, BM means bank manager.
He says, we understand your situation.
And don't worry.
We will fulfill the need of your urgent fund.
My tears stopped immediately.
A ray of hope arose in my heart.
A smile came on my face.
I said, aha, I found the way.
Very good.
How can I help you?
The bank said,
This cheque has the date of 1st June.
Give it to us today.
So I gave the cheque to the bank on 1st June, 2022.
And the bank gave me the money today in return.
So I gave the cheque to the bank.
The bank gave me the funds.
Now when 1st June comes,
The debtor who was going to give me the money,
The bank will take the money and keep it with them.
So did I get help or not?
Absolutely right.
What happened?
One of my friends comes to me.
And says, I need some money.
I said, okay.
And he says,
Now I am not getting money from anywhere in the market.
We have another friend.
We had to take money from him.
He is not giving it now.
So I said to him, take it and I will give you money now.
After a while, when he gives you money,
You tell him, he will give me money directly.
After a while, I will take money from him.
This is the same thing.
But sir, there is a problem.
There is a problem, sir.
I said, what is the problem?
Sir, is it a bank or Shirdi's Sai Baba?
I said, what is the problem?
The bank is not here to help you for free.
The bank should give me 40,000 today.
And wait for 2 months.
After 2 months, he will get 40,000.
Block your own money by giving it to someone.
Put it at risk.
And after 2 months, take back the same money.
Tell me how many stupid things are there for the bank?
This is what the bank does not do.
Do you know what the bank will do?
The bank will not give me 40,000.
The bank, for example, will give me 38,000 rupees today.
And he will take a cheque of 40,000 from me.
And when 2 months will pass,
He will collect 40,000 from this debtor.
So how much did the bank give me today? 38,000 How much did
the bank collect from the debtor? 40,000 So can you tell
the bank how much savings have been made in this process?
The bank has saved 2,000 rupees in this process.
The bank does this work for this 2,000.
I am telling my friend, listen.
I will take money from that person after 2 months.
I am giving you today.
But I am giving 38,000.
I will collect 40,000 from him.
If you want, it's okay, otherwise go.
Sir, do you say this to your friend?
Look, if you want to explain the topic, I can say this.
But in real life, there is no such thing.
But we understand the example of the bank.
The bank is not someone's friend.
This 2,000 is called discounting charges.
Discounting charges.
And this whole process is called
Discounting of the bill.
So now if you have to understand the meaning of this in one
line.
Discounting of the bill.
So what does it mean in one line?
In one line, it means this.
Friends, friends, companions.
The cheque after two months.
Get it cleared from the bank today.
And get some money deducted in return.
Is called discounting of the bill.
The cheque for 40,000 after two months.
We got 38,000 by giving it today.
2,000 discounting charges deducted.
This process is called discounting of the bill.
And that 2,000.
And why will I be ready to take 38,000?
Because I have an urgent need for funds.
I am in urgent need of funds.
That's why I will be ready to take 38,000.
I want 38,000, brother.
I will be ready in 38,000 or 37,000.
If the bank says 30,000, then I will think.
That's why the bank people also think and tell.
If they say 30,000, then they know.
Then this person will say, okay, no need to go to hell.
I will not do so much loss that I have to come to the road
tomorrow.
Whatever will be seen.
Then the man thinks like this.
That's why a little amount is deducted.
Not much.
Okay, sir.
So this is the meaning of discounting of the bill.
And the meaning of discounting charges.
Now I explain.
Now I explain the next thing.
For example.
Now I will write blue colored pencils.
What happens?
For example.
I went to the bank.
I gave this cheque to the bank today.
And in return for the bank, I took 38,000.
Now the bank is dreaming.
That two months will pass.
And 40,000 will come from the debtor.
And as soon as 38 goes, 40 comes.
2000 will be earned.
This beautiful dream of the bank breaks.
If the dream breaks, then the heart burns.
Yes, it hurts a little.
But it works.
Now some people are saying.
Sir.
Now you will not be able to study.
It is a painful song.
All the sorrows have arisen.
Now you will not be able to study.
Please.
The class is now over.
I said.
Sit for 10 more minutes.
It will be over.
No matter.
I will take care from now on.
I will not sing such songs to you.
No matter.
And this time the pad also did not disappear.
Otherwise, after listening to my song, the pad disappears.
There is some pain in the heart of the pad.
The note is in the heart of the pad.
He is also listening to the song carefully.
The debtor did not pay the bank after 2 months of 40,000
Rupees.
He did not.
The reason could be anything.
It could be that he has become insolvent.
It could be Diwali.
The debtor has become insolvent on Diwali.
This could be the reason.
There could be other reasons.
For now, there is no money in his account.
He will come after some time.
Any reason.
All in all.
The bank did not get 40,000 Rupees.
Think about the bank.
He has given 38,000 Rupees.
He thought he will get 40,000 Rupees and earn 2,000 Rupees.
To get back 38,000 Rupees.
There is a problem.
In the greed to earn 2,000 Rupees.
He went for 38,000 Rupees.
As soon as he raised his head.
He started crying.
Do you know?
Who will be caught by the bank?
The bank.
Friends.
Will not say anything to this debtor.
The bank will catch me.
The bank will say.
Son, you gave me this cheque.
We do not know who the debtor is.
He went to collect.
He could not have it.
Okay.
You give us this money.
The bank will deduct money from my account immediately.
Will not happen.
Will send it to OD.
Will start investing interest.
The bank will deduct money from my account immediately.
Immediately.
So.
Dishonor of a bill.
Discounted with the bank.
Means.
Cheque after two months.
Today I cleared it from the bank.
Brought a little less money.
And I told the bank.
After two months.
Take it from my debtor.
But my debtor did not give money to the bank after two
months.
This is dishonor of a bill.
Discounted with the bank.
In return, the bank will deduct money from my account.
The bank will take its revenge from me.
Because who knows the bank?
From me.
Who gave the cheque to the bank?
I.
Who is the criminal of the bank?
I.
Who will be handcuffed?
Me.
I do not get handcuffed.
The bank will deduct money from my account.
Whose neck will I hold?
Sir.
You will hold the neck of your debtor.
So what will happen?
Dishonor of a bill.
Discounted with the bank.
Scenario.
The bank.
He will hold my neck.
The bank will hold my neck.
My neck.
In the hands of the bank.
And I.
I will hold the neck of the debtor.
My neck.
In the hands of the bank.
In my hands.
And what is the meaning of the neck?
The bank says.
We are deducting money from your account.
The bank will deduct money from my account.
And when will I know?
That my debtor has dishonored.
My debtor has not given money to the bank.
In return, the bank has deducted money from my account.
At the time of the statement.
That's why my dear friends.
This has become a reason for.
Difference.
Come on, let's read it.
It will be fun to read.
It took 10 minutes.
This point will be clear all my life.
It was not an easy discussion.
But you listened carefully.
Very good.
When a bill of exchange.
Bill of exchange means take a cheque.
When a cheque is cleared with the bank.
Before the due date.
On the cheque of the bank.
The date that was put on the cheque.
I got it cleared before that.
Because it was an urgent need of funds.
In return, I got 2000 rupees deducted.
No doubt.
Then it is called.
Discounting of the bill.
This process is called.
Discounting of the bill.
When a bill of exchange is cleared.
With the bank.
On deduction of.
Some discounting charges.
On deduction of.
Some discounting charges.
Before the due date.
Discounting of the bill.
If such discounted bill.
Doesn't get paid to the bank.
On due date.
If the debtor does not pay the bank on due date.
Then it is called.
Dishonor of a bill.
Discounted with the bank.
Then it is called.
Dishonor of a bill.
Discounted with the bank.
In such a case.
Bank deducts the concerned amount.
From the account of the person.
Who got the bill discounted from the bank.
Bank will not fight with the debtor.
The person.
Who gave the bill to the bank.
Bank will deduct money from his account.
What will happen?
What will be the scenario?
The scenario will be.
The amount will be minus from the passbook.
And there will be no entry in the cash book.
There will be no entry in the cash book.
This is a reason for mismatch.
So we have 8 reasons for mismatch.
Now friends see.
It is not that this is an exhaustive list.
Exhaustive means complete.
That there are only 8.
There can be someone else.
But do you know what I have taught you here?
What I have basically taught.
And what you have basically learned.
That is the way of thinking.
The way of thinking.
The way of looking at things.
What are the differences in bank reconciliation?
How do we fix those things?
The way of thinking.
And the way of looking.
This is what you have learned here.
This is the main thing.
So if there is any other reason for difference.
You will be able to think.
What does it mean?
So if because of this.
My passbook has become monotonous.
If because of this, my passbook has become positive.
Then we will fix it like this.
If because of this, my cashbook has become negative.
Then we will fix it like this.
If because of this, my cashbook has become positive.
Then we will fix it like this.
You have learned the way.
You have learned the concept.
You have got the understanding.
Now if there is a new reason.
Then it is not a difficult thing.
Once the revision of 8 to 8 is done.
If you say along with me.
Then I would find that it is very good.
Check issued but not presented for payment.
Say.
What would we have done with the cashbook as soon as we
issued the check?
Now say directly.
If it comes.
If you feel that why are you getting the revision done
again?
Then say directly.
What scenario is made?
Sir check issued but not presented.
Cashbook has been minused.
And there is still no entry in the passbook.
Cashbook has been minused.
Absolutely right sir.
Check deposited in the bank but not cleared.
Cashbook has been plused.
And there is still no entry in the passbook.
I said very good.
Interest allowed by bank.
Means sir, it has been plused in the passbook.
And there is still no entry in the cashbook.
The bank has given interest and deposited the money in the
account.
Okay sir.
Interest and dividend collected by bank.
Absolutely same.
The bank has deposited the money in the account.
It has been plused in the passbook.
There is still no entry in the cashbook.
Interest and other charges by bank.
Cashbook has been minused.
And there is still no entry in the cashbook.
Interest and other charges by bank.
Means bank has deducted money from the passbook.
There is still no entry in the cashbook.
Direct payment by the bank.
Absolutely same scenario.
Cashbook has been minused.
And there is still no entry in the cashbook.
Cashbook has been minused.
There is still no entry in the cashbook.
Direct payment into the bank by the customer.
What does it mean?
Sir, it means
Direct payment into the bank by the customer.
Means Our customer has deposited the money in the bank.
It has been plused in the passbook.
There is still no entry in the cashbook.
Dishonor of a bill discounted with bank.
Means Our debtor has cheated us.
The bank has deducted money from our account.
It has been minused in the passbook.
There is still no entry in the cashbook.
So friends, I would like you to write this.
This is a short form.
This will come in a very good grip.
If you write it once, it will be a very good thing.
This would be a tremendous deal.
If you do this once.
Write it, note it down.
And I would like
You guys say it and revise it once.
All of you.
Not now.
I just said it.
If you listen again, it will be three times.
You will get bored.
So what do you have to do?
What you have to do is
Take it with you and speak at home.
Do revision and practice.
Yes sir, we will definitely do it.
If you do not understand any word from this.
Then kindly ask me.
But definitely note it.
1, 2, 3, 4, 5, 6, 7, 8
Cashbook minus
Passbook no entry
Cashbook plus
Passbook plus
Cashbook no entry
Passbook minus
Cashbook no entry
Passbook plus
Cashbook no entry
Passbook minus
Cashbook no entry
I will tell you a little process ahead.
How will the process be ahead?
Now we will do some practicals.
On this
And these reasons
Before doing practical
How to rectify these reasons
Now we know that BRS is made.
To match the difference in the cashbook and passbook
Why is the difference?
Now how to correct the difference
How to match To rectify the reasons
And then we will do some practicals.
And then we will see in teleprime How will BRS work in
teleprime?
So this will be our journey ahead.
Will meet you in the coming clips.
Till then thank you bye bye and take care.
Thank you.