* Bank Reconciliation Statement is prepared either by starting with the Bank pass book balance or Cash book balance.

* If the balance of the Cash book is taken as a starting point then Cash book balance is to be adjusted in accordance with the entries passed in the Bank pass book and vice versa. For example: If the balance is taken as per the Cash book then the following items will be added:

* Cheques issued but not presented for payment;

* Amount credited in Passbook but not in Cash book;

* Deposits made in the bank directly;

* Wrong credits given by bank;

* Interest credited in the Passbook.