Q.On 31st March 2025, the Cash Book (Bank Column) of a trader showed a debit balance of ₹25,600. On comparing this with the Pass Book, the following differences were found:

This is a fuller problem with seven adjustments, including a genuine recording error rather than just a timing difference — the error must be corrected in the BRS in addition to the usual timing items.

Bank Reconciliation Statement as on 31st March 2025 (starting from the balance as per Cash Book)

Reasoning for each item:

• (a), (b), (c), (d), (e) — treated exactly as in the standard Cash-Book-to-Pass-Book pattern (see the first worked example): timing differences and bank-only entries are added or subtracted per the usual rule.
• (f) A dividend collected directly by the bank on the firm's behalf, and already credited in the Pass Book but not yet in the Cash Book, works exactly like the interest in item (d) — the Pass Book is already higher by this amount, so it is added. …

When a problem includes a recording error (not just a timing difference), first work out exactly how much the erroneous book is overstated or understated by, and treat only that SHORTFALL or EXCESS as the reconciling amount — here, the cheque was correctly paid by the b …

A common error is treating item (g) as if the full ₹1,000 cheque were simply 'not yet presented' (a timing difference) rather than recognising it as an already-cleared cheque wrongly recorded — th …