Preparation of BRS - Cash Book and Pass Book Comparison for Common Period

When the extracts of either book (cashbook/passbook) are given for the same period, focus on these points:

1. Uncommon Items: Only those items that appear in one book but not in the other are considered for reconciliation.

2. Opening Balance: Note the opening balances in both books.

3. Matched Entries: Ignore entries appearing in both books in the same period; they do not cause any difference in balances.

In the Cash Book (Bank column), these unmatched entries are found:

• Cheques received from Mohan (₹7,100) and Deepak (₹6,800) are deposited into the bank but not yet collected by the bank—not in the passbook yet.

• In the Pass Book: A dividend of ₹2,000 was collected by the bank and credited—not yet in the cash book.

On the payment side:

• Cheque of ₹2,600 issued to Atul and Sons—not yet presented for payment—appears only in the cash book.

• An insurance premium of ₹6,500 paid by the bank—not in the cash book.

• Bank charges of ₹800 debited—not in the cash book.

How to Prepare the Bank Reconciliation Statement

i) When the Balance as per the Cash Book is Given

ii) When the Balance as per the Passbook is Given