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. e) 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. 1) In case, the books show an adverse balance (1.c. 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. 837 The following table will help to learn the preparation of the bank reconciliation statement- De ce ser Glines per Cash Back or pullkor Odatasper Ordet Pass Book Cash Book L Those which leef the delete Chun deposited butted by bank Cho thought in Cash Bock butted to be sent to the Bank 1. There is which affect the conditie Cash Book Chequrd but not led for pan. Those which of the Diside of pass Book Instidend edited by bank Amount deposited directly come into bank Chequrt to the bank but to be entered into the Cash Book The time which affect the dirbil nide of Puus ook Blesk charges charged by bank Intestinal Payment made by bank on 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 Illustration: From the following particulars prepare a Bank Reconciliation Statement as on 31 December, 2006. , 1 Balance as per Cash Book Rs.5,800. in 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