c) The effect of the particular cause of difference should be studied on the balance shown by the other book. d) In case, the cause has resulted in an increase in the balance shown by the other book, the amount of such increase , should be added to the balance as per the former book which has been taken as the base. c) In case, the cause has resulted in decrease in the balance shown by the other book, the amount of such decrease should be substracted from the balance as per the former book which has been taken as the base. In case, the books show an adverse balance i.e. an overdraft) the amount of the overdraft should be put in the minus column. Bank Reconciliation Statement should then be . prepared on the same pattern as if there is a favourable balance instead of their being an overdraft. r31 The following table will help to learn the preparation of the bank reconciliation statement- Dres per Grace Cash Back or Hooker Odata Owenta pe L Theses which are the deler side of Cash Book: Cheques deposited but most colected by bank Che theme in Cash Back butted to be 1. Tom which affect the conditside of Cash Fook Cheques issued but not presented for payment Il Thones which are the real side of pass Book Intest/Didad coded by nik Amount deposited direct by a customer inte bank count. Chequest to the bank buted to be the Clash look N. The tich let the elit ide of Aus Hook Renk charges charged by bank Intestat Payment made by bank in standing instruction of The above technique will be clear with it help of the illustrations given in the following pages. . 9.3.1 Where causes of differences are given Ilustration: From the following particulars prepare a Bank Reconciliation Statement as on 314 December, 2006. i) Balance as per Cash Book Rs. 5,800. ii) Cheques issued but not presented for payment Rs. 2,000. im Cheques sent for collection but not collected upto 31 December, 2005 Rs. 1,500. iv) The Bank had wrongly debited the account of the firm by Rs. 200 which was rectified by them after 31 December. Balance as per Pass Book is Rs. 6.100