B.R.S. is a statement prepared to know the difference between balance cash book ( bank column ) and pass book.
Dr. - Favourable Balance
Cr. - overdraft or unfav. Balance
Cr. - Overdraft
Dr.- Favourable Balance
1. When we issue cheque from bank the Cash Book decreases ↓ .
2. When we deposit cheque into the bank the Cash Book Increases. ↑
Effect on Cash book and Pass Book.
1. Cheque issue - C.B. → Decrease ↓
2. Cheque deposit - C.B. → Increase ↑
3. Cheque dishonour - Always P.B. ↓