Accounting · Bank Reconciliation Statement

Preparing BRS Starting from Pass Book Balance

Updated 1 October 2026 · Fact-checked

A BRS starting from pass book balance adjusts the bank's figure to reach the cash book balance. For a favourable balance, add cheques deposited but not yet credited and bank debits not yet recorded. Subtract cheques issued but not yet presented and bank credits not yet recorded. For an overdraft, reverse every sign.

Understand Preparing BRS Starting from Pass Book Balance

The pass book is the bank's record of your account. The cash book is your own record. On any date the two balances often differ because of timing gaps and items one side has not yet recorded. A Bank Reconciliation Statement (BRS) explains the difference.

You can begin from either balance. When you begin from the pass book balance, your target is the cash book balance. You are moving from the bank's figure to your own figure.

This is why each item gets the opposite treatment to a cash book start. Take a cheque deposited but not yet credited by the bank. Your cash book already shows it as a receipt, but the pass book does not. So the cash book balance is higher. Starting from the pass book, you add the cheque to reach the cash book balance. A cash book start would deduct it.

Two groups of items matter. Timing items (cheques issued not presented, cheques deposited not collected) are already in the cash book. Unrecorded items (bank charges, interest, direct deposits, direct payments) are in the pass book but missing from the cash book. Both groups need adjusting when you start from the pass book.

A favourable pass book balance means a credit balance in the bank's books. An overdraft as per pass book means the bank is owed money. The overdraft case reverses every add and less, so decide which case you are in before you start.

Key rules to remember

Favourable pass book balance: items to ADD: Add: (1) cheques deposited but not yet credited by bank; (2) amounts debited by bank but not in cash book (bank charges, direct payments, standing instructions, dishonoured cheques of customers); The cash book is higher than the pass book for these items, so they are added.
Favourable pass book balance: items to LESS: Less: (1) cheques issued but not yet presented for payment; (2) amounts credited by bank but not in cash book (interest, dividend, direct deposits by customers); The cash book is lower than the pass book for these items, so they are deducted.
Overdraft as per pass book: Add: cheques issued not presented; amounts credited by bank not in cash book. Less: cheques deposited not credited; amounts debited by bank not in cash book.; Every sign is the reverse of the favourable case. The result is the overdraft as per cash book.
Result of the statement: Balance as per pass book ± adjustments = Balance as per cash book; If you have no new cash book errors, this should match the cash book exactly.

How to solve Preparing BRS Starting from Pass Book Balance questions

Use this order for any question. It works for favourable balances and overdrafts.

1Read what is given. Decide whether the pass book shows a favourable balance or an overdraft. Note the date.
2Write the heading: 'Bank Reconciliation Statement as on [date]'. Start with 'Balance as per pass book' and mark it favourable or overdraft.
3Go through each item one by one. Ask: is it already in the cash book (timing item) or only in the pass book (unrecorded item)?
4Apply the starting-from-pass-book rule to each item: add or less, using the favourable or overdraft table.
5Ignore items that cause no difference, such as a cheque both books record in the same period.
6Total the additions and deductions, then work out the final balance as per cash book.
7Label the final line clearly, for example 'Balance as per cash book (Dr)' or 'Overdraft as per cash book'.
8Do a quick check: if the cash book balance is given, your answer must match it.

Quickest way: Two-column tick method

When to use it: Use it when the question lists six or more items and you are short of time.

Draw two columns next to the items: 'Add' and 'Less'.
Fix the favourable-balance rule in your head: deposited not credited and bank debits not recorded go in Add; issued not presented and bank credits not recorded go in Less.
Mark each item A or L in the margin as you read it. Do not calculate yet.
For an overdraft, flip every A and L before you total.
Write the statement once, using the marked items. Sum the A items and the L items separately, then do one subtraction.
Do a quick reverse check on one item of each type to confirm the direction.

Common mistakes in Preparing BRS Starting from Pass Book Balance

Using the cash book start rules unchanged
Students memorise one table and apply it to both starting points.
Fix: Remember the rule: the pass book start has the opposite treatment of the cash book start. Write 'PB start' at the top of your rough work.
Adding a cheque issued but not presented when the pass book balance is favourable
Students think 'the bank has not paid it yet, so the bank balance needs adding back'. That is the logic for a cash book start, not a pass book start.
Fix: The cash book has already deducted the cheque, so it is lower than the pass book. Deduct the cheque to reach the cash book balance.
Not flipping the signs for an overdraft
Students forget that an overdraft reverses the logic of every item.
Fix: Circle 'overdraft' as soon as you see it. Flip every add and less, and label the answer as an overdraft as per cash book.
Adding bank charges or direct deposits in the wrong direction
Students think 'bank charges reduce balance, so deduct' and forget the target is the cash book.
Fix: Bank charges are already in the pass book but not in the cash book. Add them back to reach the cash book balance. Direct deposits are less.
Adjusting items that do not cause a difference
Students adjust every item mentioned in the question.
Fix: Check whether each item is already recorded on both sides. Only adjust items that appear in one book and not the other.
Leaving the result unlabelled
Students rush and write only a number.
Fix: Always write 'Balance as per cash book' or 'Overdraft as per cash book'. Labels earn marks.

Worked examples

Example 1

On 31 March the pass book of Mehta Traders shows a favourable balance of ₹45,000. Cheques issued but not yet presented: ₹8,000. Cheques deposited but not yet credited: ₹5,000. Interest of ₹600 credited by the bank is not in the cash book. Bank charges of ₹250 debited by the bank are not in the cash book. A customer directly deposited ₹4,000 into the bank, not yet entered in the cash book. The bank paid an insurance premium of ₹1,500 under a standing instruction, not yet entered in the cash book. Prepare the BRS to find the cash book balance.

Show the solution

Start: balance as per pass book (favourable) = ₹45,000.
Add: cheques deposited not credited ₹5,000; bank charges ₹250; insurance premium paid by bank ₹1,500. Total additions = ₹6,750.
Less: cheques issued not presented ₹8,000; interest credited ₹600; direct deposit by customer ₹4,000. Total deductions = ₹12,600.
Balance as per cash book = 45,000 + 6,750 − 12,600 = ₹39,150.
Check: start from cash book ₹39,150. Add interest 600 and direct deposit 4,000 = ₹43,750. Less bank charges 250 and insurance 1,500 = ₹42,000. Add cheques issued not presented ₹8,000 = ₹50,000. Less cheques deposited not credited ₹5,000 = ₹45,000, which is the pass book balance.

Answer: Balance as per cash book (debit) = ₹39,150.

Example 2

On 30 June the pass book shows an overdraft of ₹18,000. Cheques issued but not yet presented: ₹6,000. Cheques deposited but not yet credited: ₹9,000. Bank charges of ₹300 debited by the bank are not in the cash book. A dividend of ₹1,200 collected by the bank and credited is not in the cash book. Find the overdraft as per cash book.

Show the solution

Start: overdraft as per pass book = ₹18,000.
Because this is an overdraft, signs are reversed.
Add: cheques issued not presented ₹6,000; dividend credited by bank ₹1,200. Total = ₹7,200.
Running total = 18,000 + 7,200 = ₹25,200.
Less: cheques deposited not credited ₹9,000; bank charges ₹300. Total = ₹9,300.
Overdraft as per cash book = 25,200 − 9,300 = ₹15,900.
Check: adjust the cash book overdraft ₹15,900 for dividend (−1,200) and charges (+300) to get ₹15,000. Cheques issued not presented reduce the pass book overdraft by ₹6,000, so ₹9,000. Cheques deposited not credited raise it by ₹9,000 to ₹18,000, which matches the pass book.

Answer: Overdraft as per cash book = ₹15,900.

Exam tips

Read the first line of the question twice. Check whether it gives a favourable balance or an overdraft, and whether you must start from the pass book.
Write each item's add or less decision beside it in rough work. Examiners award step marks for correct treatment even if the final total is wrong.
If the question gives the cash book balance too, use it as a check. A mismatch means a sign error somewhere.
Show the statement in a neat vertical format with the date in the heading and a labelled final line.
Do not spend time adjusting items that appear in both books in the same period. They cause no difference.

Practice questions from Bank Reconciliation Statement

Preparing BRS Starting from Pass Book Balance: frequently asked questions

What is the main difference between BRS from cash book and from pass book?

The target changes. Starting from the cash book, you reach the pass book balance. Starting from the pass book, you reach the cash book balance. As a result, each add or less is reversed.

How do I treat cheques issued but not presented when starting from the pass book?

Deduct them if the pass book shows a favourable balance. The cash book has already deducted them but the bank has not, so the cash book is already lower than the pass book. Add them only if the pass book shows an overdraft.

What changes when the pass book shows an overdraft?

Every add and less is reversed compared with the favourable case. Cheques issued not presented and bank credits not in the cash book are added. Cheques deposited not credited and bank debits not in the cash book are deducted. The answer is an overdraft as per cash book.

Do I need to adjust the cash book first?

Not for the statement itself. The BRS handles the unrecorded items. In practice, though, you should correct your cash book later for items like bank charges and interest.