Accounting · Bank Reconciliation Statement

Bank Reconciliation Statement When Balances Are Given on a Different Date

Updated 1 October 2026

In these questions the balance you are given is not on the date you need. You first work back or forward to that date by adjusting for items that cleared or were recorded in between. Then you reconcile as usual. The key step is taking the opening position and applying each item with the correct sign.

Understand BRS When Balances Are Given on a Different Date

A normal BRS compares the cash book balance and the pass book balance on one date. Many exam questions do not give you that. They may give the pass book balance on 31 March, but ask for the balance on 31 December, or the cash book balance. You must first move the balance to the right date.

The idea is simple. The pass book shows what the bank has recorded. The cash book shows what you have recorded. Cheques and deposits that you recorded but the bank has not yet processed explain the difference. When the question gives a later date or an opening balance, you use the items that happened in the period to roll the balance back or forward.

In some questions the opening balance is given along with a list of items that were pending at the start. Items pending at the start that cleared during the year change the position. For example, a cheque issued last year and presented this year reduces the pass book balance this year, but it was already deducted in the cash book last year.

So you work in two layers. First, get the balance on the required date by adjusting for time. Second, reconcile that balance with the other record. Keep every step as a clear line with a sign, so the examiner can follow your working and give you step marks.

Key rules to remember

Cash book (debit balance) to pass book: Pass book balance = Cash book balance + Cheques issued not yet presented − Cheques deposited not yet collected + Credits by bank not in cash book − Debits by bank not in cash book; Use this when you have the favourable cash book balance and need the pass book balance. The cash book has already deducted the issued cheques but the bank has not, so the pass book is higher: add them. The cash book has already added the deposited cheques but the bank has not credited them yet, so deduct them.
Pass book to cash book (credit in pass book is favourable): Cash book balance (after entering bank items) = Pass book balance − Cheques issued not yet presented + Cheques deposited not yet collected. Before entering bank items, subtract credits by bank not in cash book and add debits by bank not in cash book.; Works when the pass book shows a favourable balance. Cheques issued but not presented are deducted and cheques deposited but not collected are added. Bank items such as interest or charges are then adjusted depending on whether the cash book balance is wanted before or after they are entered. Reverse the signs of all items for an overdraft.
Overdraft rule: For an overdraft, every item that increases a favourable balance decreases the overdraft, and the other way round; Many wrong answers come from not flipping the sign when the balance is an overdraft.
Rolling a balance to another date: Balance on required date = Balance on given date ± transactions between the two dates that affect that record; Moving back means reversing the effect of the transactions. Moving forward means applying them.

How to solve BRS When Balances Are Given on a Different Date questions

Use this order for any question where the balance is not on the date you need. Write each step on a separate line.

1Read what is given and what is asked. Note which book (cash book or pass book) the balance belongs to, its date, and whether it is favourable or an overdraft.
2Mark the date you need the balance on. Decide whether you must move forward or backward in time.
3List all items that fall between the two dates and see which book each one affects. Ignore items that affect both books equally, as they cause no difference.
4Adjust the given balance step by step with a clear sign for each item. For an overdraft, flip the effect of each item.
5Check items pending at the start of the period. Those that cleared in the period change the balance, and those that remain pending stay in the reconciliation.
6Once you have the balance on the required date, prepare the BRS or the adjusted cash book as the question asks, starting from the balance you derived.
7Verify the result. The final figure from your other record should match the figure from the first record after all reconciling items.

Quickest way: One-column running total

When to use it: Use this when the question gives a long list of items and asks for just one balance, either the cash book or the pass book figure.

Write the given balance at the top with its type (favourable or overdraft) and date.
Go down the list once. Write a plus or minus beside each item for the book you are solving.
Skip items that show the same effect in both books.
Add up the plus items and the minus items separately, then combine them in one line.
State the answer with its type, and label it clearly as favourable or overdraft.

Common mistakes in BRS When Balances Are Given on a Different Date

Applying the signs for a favourable balance to an overdraft
Students memorise plus and minus rules without understanding the direction of each item.
Fix: Write the balance type first. For an overdraft, ask whether the item makes the overdraft larger or smaller, then apply it.
Adjusting for items that are already in both books
The list looks long, so students apply every item.
Fix: Only items recorded in one book and not in the other cause a difference. Check each item against both books.
Ignoring cheques that were pending at the start
Students treat only current period items as reconciling items.
Fix: Check the opening list. A cheque issued last year and presented now affects the pass book this year, so include it in your roll-forward.
Rolling the balance in the wrong direction
The date given is later than the date needed, and students add when they should reverse.
Fix: Draw a quick timeline. Going back means undoing the effect of the items, going forward means applying them.
Showing only the final answer
Students do the arithmetic in their head to save time.
Fix: Show each adjustment on its own line with a sign. A small slip then costs one mark instead of the full answer.

Worked examples

Example 1

The pass book of a trader shows a favourable balance of ₹58,000 on 31 March. Cheques issued of ₹12,000 have not been presented. Cheques deposited of ₹8,000 have not been collected. The bank credited interest of ₹500 which is not in the cash book. Find the cash book balance on 31 March before the interest is entered.

Show the solution

Start with the pass book balance (favourable): ₹58,000.
Cheques issued but not presented: the cash book has already deducted them, the bank has not, so the pass book is higher. Deduct ₹12,000. Balance: ₹46,000.
Cheques deposited but not collected: the cash book has already added them, the bank has not credited them, so the pass book is lower on this count. Add ₹8,000. Balance: ₹54,000.
Interest credited by the bank is in the pass book but not yet in the cash book, so the cash book before entering it is lower by that amount. Deduct ₹500. Balance: ₹53,500.
Check: once the cash book enters the ₹500 interest, it will show ₹54,000, which matches the pass book adjusted for the cheques.

Answer: The cash book shows a favourable balance of ₹53,500 before the interest is entered (₹54,000 after it is entered).

Example 2

The cash book shows a bank balance of ₹40,000 (debit) on 31 December. A cheque of ₹6,000 issued by the trader had not been presented for payment, and a cheque of ₹4,000 deposited was not yet collected. The bank also debited ₹300 as charges, not yet entered in the cash book. Find the pass book balance on 31 December.

Show the solution

Start with the cash book balance (favourable): ₹40,000.
Cheques issued but not presented: the cash book has already deducted them but the bank has not, so the pass book is higher. Add ₹6,000. Balance: ₹46,000.
Cheques deposited but not collected: the cash book has already added them but the bank has not yet credited them, so the pass book is lower on this count. Deduct ₹4,000. Balance: ₹42,000.
Bank charges ₹300 are debited in the pass book but not in the cash book, so the pass book is lower. Deduct ₹300. Balance: ₹41,700.
Pass book = 40,000 + 6,000 − 4,000 − 300 = ₹41,700.

Answer: The pass book shows a favourable balance of ₹41,700.

Exam tips

Underline the dates in the question first. Most errors in this topic come from reading the wrong date.
Always state whether the final balance is favourable or an overdraft.
Present the working as a statement with the given balance first, then each item with a plus or minus sign.
If the question says the balance is given as an overdraft, flip the effect of every item before you start.

Practice questions from Bank Reconciliation Statement

BRS When Balances Are Given on a Different Date: frequently asked questions

How do I find the cash book balance from the pass book balance?

Start with the pass book balance. Adjust for cheques issued but not presented, cheques deposited but not collected, and bank items not yet in the cash book. Apply each item with the correct sign. The result is the cash book balance.

What if the pass book shows an overdraft?

The rules reverse. An item that raises a favourable balance reduces the overdraft. Write the balance type first so you do not mix up the signs.

Do items from the previous period matter?

Yes. A cheque issued last year and presented this year affects the pass book now. Check the opening list and include any item that cleared during the period.

Do I need to prepare a full BRS every time?

No. If the question asks only for a balance, the running total is enough. If it asks for a BRS, show the statement in full with all items and signs.