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3 years ago

Easy ways to learn BRS

Business

1 answer:

Furkat [3]3 years ago

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Answer:

BRS is a Bank Reconciliation Statement:

1. COMPARE THE DEPOSITS

Match the deposits in the business records with those in the bank statement. Compare the amount of each deposit recorded in the debit side of the bank column of the cashbook with credit side of the bank statement and credit side of the bank column with the debit side of the bank statement. Mark the items appearing in both the records.

2. ADJUST THE BANK STATEMENTS

Adjust the balance on the bank statements to the corrected balance. For doing this, you must add deposits in transit, deduct outstanding checks and add/deduct bank errors.

Deposits in transit are amounts that are received and recorded by the business but are not yet recorded by the bank. They must be added to the bank statement.

Outstanding checks are those that have been written and recorded in cash account of the business but have not yet cleared the bank account. They need to be deducted from the bank balance. This often happens when the checks are written in the last few days of the month.

Bank errors are mistakes made by the bank while creating the bank statement. Common errors include entering an incorrect amount or omitting an amount from the bank statement. Compare the cash account’s general ledger to the bank statement to spot the errors.

3. ADJUST THE CASH ACCOUNT

The next step is to adjust the cash balance in the business account.

Adjust the cash balances in the business account by adding interest or deducting monthly charges and overdraft fees.

To do this, businesses need to take into account the bank charges, NSF checks and errors in accounting.

Bank charges are service charges and fees deducted for the bank’s processing of the business’ checking account activity. This can include monthly charges or charges from overdrawing your account. They must be deducted from your cash account. If you’ve earned any interest on your bank account balance, they must be added to the cash account.

An NSF (not sufficient funds) check is a check that has not been honored by the bank due to insufficient funds in the entity’s bank accounts. This means that the check amount has not been deposited in your bank account and hence needs to be deducted from your cash account records.

Errors in the cash account result in an incorrect amount being entered or an amount being omitted from the records. The correction of the error will increase or decrease the cash account in the books.

4. COMPARE THE BALANCES

After adjusting the balances as per the bank and as per the books, the adjusted amounts should be the same. If they are still not equal, you will have to repeat the process of reconciliation again.

Once the balances are equal, businesses need to prepare journal entries for the adjustments to the balance per books

Explanation:

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P1 $36,000

Q2 $54,000

B2 $90,000

Explanation:

For computing each ordering and receiving overhead assigned, first we have to calculate the price per order which is shown below:

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where,

Total purchase orders = P1 purchase orders + Q2 purchase orders + R3 purchase orders

= 400 + 600 + 1,000

= 2,000 purchase orders

And, the Total cost of purchase orders is $180,000

Now put these values to the above formula

So, the price would equal to

= $180,000 ÷ 2,000 orders

= $90

Now we can compute easily.

For P1 = Purchase orders × price per order

= 400 × $90

= $36,000

For Q2 = Purchase orders × price per order

= 600 × $90

= $54,000

For R3 = Purchase orders × price per order

= 1,000 × $90

= $90,000

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Answer:

Production budget:

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Beginning inventory= (2,600)

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Explanation:

Giving the following information:

Pasadena Candle Inc. projected sales of 64,000 candles for January. The estimated January 1 inventory is 2,600 units, and the desired January 31 inventory is 7,000 units.

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Easy ways to learn BRS​

Easy ways to learn BRS