This document outlines items that can cause differences between a bank statement and cash book, including unpresented cheques, interest payments, wrongly credited or debited items, dishonored cheques, and direct customer deposits. It also lists how overdraft and balance amounts should be treated for reconciliation, with the goal of reconciling the balance as shown in the cash book to the balance in the bank pass book.

1. Increase in bank account (debits balances) Decrease in bank account (credit balances)
Un presented or un cashed cheques Un collected or un credit cheque or deposit in
transit cheque
Any receipts item like (interest received, bank
receivable, collection dividend, cheque etc.)
Any payment by the bank or customer like (
interest paid ,paid cheque etc)
Any item wrongly credited by the bank Any item wrongly debited by the bank
When debit side is over added or over cast When debit side is under cast or under added
When credit side is under added or under cast When credit side is over cast or over added
Issued cheque dishonored Deposit cheque dishonored
Any item amount or cheque directly deposited by
the customer
Cheque received but failed to sent the bank by
the customer
Treatment of balance
Debit balance Credit balance
 Balance as per cash book  Balance as per pass book
 Overdraft balance as per pass book  Overdraft balance as per cash book
BANKS RECONCILIATION STATEMENT