BRS: Add or Less? The Ultimate Debit/Credit Trick
Bank Reconciliation Statements (BRS) are the #1 cause of headaches for CA students. Most people try to memorize a massive list of "Add this, Less that." Stop! 🛑 Memorizing is for history class; Accounting is for logic.
The Hand Trick 🖐️
Have you heard of the Hand Trick? It’s a literal game-changer that lets you solve any BRS question in under 30 seconds without a single formula.
How to do it:
- Imagine your Left Hand is the Cash Book and your Right Hand is the Pass Book. Hold them level.
- Now, read the transaction.
- Example: "Cheque issued but not yet presented for payment."
- In your Cash Book (Left Hand), you’ve already recorded the payment, so move your Left Hand DOWN. 📉
- But the Bank hasn't seen it yet, so your Pass Book (Right Hand) stays STATIONARY.
The Goal: Match the Hands
If the question starts with "Balance as per Cash Book," you have to make your Left Hand match the Right Hand. To get back to the Right Hand (which is higher), you must move your Left Hand UP.
Conclusion: Add it! ✅
It works every single time, whether you're dealing with overdrafts, bank charges, or direct deposits. Just visualize the hands moving, and you'll stop guessing and start getting full marks.