Q.The Pass Book of a trader showed a debit balance (overdraft) of ₹10,000 as on 31st January 2025. On comparison with the Cash Book, the following were found:

This combines both complications at once — starting from the Pass Book AND the balance being an overdraft — so the treatment must be read from the 'Pass Book overdraft → Cash Book' column of the master table.

Bank Reconciliation Statement as on 31st January 2025 (starting from the overdraft as per Pass Book)

(Because both the starting book AND the balance type are 'reversed' relative to the simplest case, every item's treatment is read from the 'Pass Book overdraft → Cash Book' column of the master rule table.)

Reasoning for each item:

• (a) Cheques issued but not presented are already reflected as a larger overdraft in the Cash Book (already credited/reduced), but the bank has not yet paid them out, so the Pass Book overdraft is smaller — to move from the Pass Book figure UP to the Cash Book figure, this is added.
• (b) Cheques deposited but not yet credited by the bank are already reflected in the Cash Book as reducing the overdraft, so the Cash Book overdraft is smaller than the Pass Book's — subtract, to bring the Pass Book figure down.
• (c) Interest already charged (increasing overdraft) by the bank in the Pass Book, not yet in the Cash Book, means the Cash Book overdraft is smaller — subtract. …

As in the previous overdraft problem, first find the treatment as though everything were the simplest case (Cash Book, favourable) using the master table's first column, then apply BOTH reversals in sequence: once for starting from the Pass Book instead of the Cash Book, and once for the balance being an ov …

Applying only ONE of the two reversals (starting point OR balance type) instead of both is the most common mistake here — always identify BOTH which book you are starting from and whi …