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 211
LESSON 14:   
CASH BOOK, PASS BOOK, BANK 
RECONCILIATION STATEMENT 
Dr. Jyotsna Sethi, Rekha Rani 
STRUCTURE 
14.1 Introduction 
14.2 Objectives  
14.3 Cash Book  
14.4 Types of Cash Book  
14.4.1 Simple Cash Book 
14.4.2 Two Column Cash Book 
14.4.3 Three Column Cash Book  
14.5 Petty Cash Book.  
14.5.1. Imprest System of Petty Cash Book. 
14.5.2 Advantages of Petty Cash Book  
14.6 Pass Book  
14.7.  Bank Reconciliation Statement  
14.7.1  Meaning  
14.7.2. Causes for difference between Cash Book Balance and Pass 
Book Balance.  
14.7.3. Need and importance of Bank Reconciliation Statement  
14.7.4  Procedure for preparation of Bank Reconciliation Statement.  
14.8.  Summary  
14.9.  Glossary  
14.10.  Self Assessment Questions  
14.11.  Answer to check your progress  
14.12.  Further Readings  
 
14.1. INTRODUCTION 
Every entrepreneur should have knowledge of cash book and pass book as 
from these books, he may check how much balance is available to him for 
meeting his expenses and liabilities and what are the details of receipts and 
payments of a particular period. With the details of payments it can be 
checked that whether the payments are of reasonable amount or not. If the 
expanses are unreasonably high he may take steps to control them. An 
Page 2


 211
LESSON 14:   
CASH BOOK, PASS BOOK, BANK 
RECONCILIATION STATEMENT 
Dr. Jyotsna Sethi, Rekha Rani 
STRUCTURE 
14.1 Introduction 
14.2 Objectives  
14.3 Cash Book  
14.4 Types of Cash Book  
14.4.1 Simple Cash Book 
14.4.2 Two Column Cash Book 
14.4.3 Three Column Cash Book  
14.5 Petty Cash Book.  
14.5.1. Imprest System of Petty Cash Book. 
14.5.2 Advantages of Petty Cash Book  
14.6 Pass Book  
14.7.  Bank Reconciliation Statement  
14.7.1  Meaning  
14.7.2. Causes for difference between Cash Book Balance and Pass 
Book Balance.  
14.7.3. Need and importance of Bank Reconciliation Statement  
14.7.4  Procedure for preparation of Bank Reconciliation Statement.  
14.8.  Summary  
14.9.  Glossary  
14.10.  Self Assessment Questions  
14.11.  Answer to check your progress  
14.12.  Further Readings  
 
14.1. INTRODUCTION 
Every entrepreneur should have knowledge of cash book and pass book as 
from these books, he may check how much balance is available to him for 
meeting his expenses and liabilities and what are the details of receipts and 
payments of a particular period. With the details of payments it can be 
checked that whether the payments are of reasonable amount or not. If the 
expanses are unreasonably high he may take steps to control them. An 
 211
entrepreneur who regularly checks his cash and bank balances would never 
face problems like dishonor of cheques or cash crisis etc. Entrepreneur, who 
doesn’t distinguish between his revenue and profits, may spend all his receipts 
for his personal purposes subsequently resulting in deficiency of cash for 
business purposes and lead to cash crisis. 
 
14.2. OBJECTIVES  
After going through this lesson you should be able to  
 Explain the meaning of Cash Book, Pass Book, and Petty Cash Book.  
 Discuss the types of cash book.  
 Enter the transactions in Cash Book.  
 Explain the meaning, need and importance of bank reconciliation 
statement.  
 Discuss the causes for difference between the balances of Pass Book 
and Cash Book.  
 Prepare bank reconciliation statement. 
 
14.3 CASH BOOK 
In business most of the transactions relate to receipt of cash, payments of cash, 
sale of goods and purchase of goods. So it is convenient to have separate 
books for each such class of transaction, one for receipts and payments of 
cash, one for purchase of goods and one for sale of goods.  These books are 
called subsidiary books.  
Cash book is a subsidiary book which records the receipts and payment of 
cash. With the help of cash book cash and bank balance can be checked at my 
point of time.                                
                     (Ref.: T.S. Grewal, “Double Entry Book Keeping”) 
 
14.4. TYPES OF CASH BOOK  
Cash book can be of four types:  
1. Simple Cash Book.  
2. Two column cash book.  
3. Three column cash book.  
4. Petty cash book     
14.4.1 SIMPLE CASH BOOK  
A simple cash book is prepared like any ordinary account. The receipts are 
recorded in the Dr Side and the payments are recorded in the Cr side of the 
cash book. The specimen Performa of a simple cash book is given as follows:  
Page 3


 211
LESSON 14:   
CASH BOOK, PASS BOOK, BANK 
RECONCILIATION STATEMENT 
Dr. Jyotsna Sethi, Rekha Rani 
STRUCTURE 
14.1 Introduction 
14.2 Objectives  
14.3 Cash Book  
14.4 Types of Cash Book  
14.4.1 Simple Cash Book 
14.4.2 Two Column Cash Book 
14.4.3 Three Column Cash Book  
14.5 Petty Cash Book.  
14.5.1. Imprest System of Petty Cash Book. 
14.5.2 Advantages of Petty Cash Book  
14.6 Pass Book  
14.7.  Bank Reconciliation Statement  
14.7.1  Meaning  
14.7.2. Causes for difference between Cash Book Balance and Pass 
Book Balance.  
14.7.3. Need and importance of Bank Reconciliation Statement  
14.7.4  Procedure for preparation of Bank Reconciliation Statement.  
14.8.  Summary  
14.9.  Glossary  
14.10.  Self Assessment Questions  
14.11.  Answer to check your progress  
14.12.  Further Readings  
 
14.1. INTRODUCTION 
Every entrepreneur should have knowledge of cash book and pass book as 
from these books, he may check how much balance is available to him for 
meeting his expenses and liabilities and what are the details of receipts and 
payments of a particular period. With the details of payments it can be 
checked that whether the payments are of reasonable amount or not. If the 
expanses are unreasonably high he may take steps to control them. An 
 211
entrepreneur who regularly checks his cash and bank balances would never 
face problems like dishonor of cheques or cash crisis etc. Entrepreneur, who 
doesn’t distinguish between his revenue and profits, may spend all his receipts 
for his personal purposes subsequently resulting in deficiency of cash for 
business purposes and lead to cash crisis. 
 
14.2. OBJECTIVES  
After going through this lesson you should be able to  
 Explain the meaning of Cash Book, Pass Book, and Petty Cash Book.  
 Discuss the types of cash book.  
 Enter the transactions in Cash Book.  
 Explain the meaning, need and importance of bank reconciliation 
statement.  
 Discuss the causes for difference between the balances of Pass Book 
and Cash Book.  
 Prepare bank reconciliation statement. 
 
14.3 CASH BOOK 
In business most of the transactions relate to receipt of cash, payments of cash, 
sale of goods and purchase of goods. So it is convenient to have separate 
books for each such class of transaction, one for receipts and payments of 
cash, one for purchase of goods and one for sale of goods.  These books are 
called subsidiary books.  
Cash book is a subsidiary book which records the receipts and payment of 
cash. With the help of cash book cash and bank balance can be checked at my 
point of time.                                
                     (Ref.: T.S. Grewal, “Double Entry Book Keeping”) 
 
14.4. TYPES OF CASH BOOK  
Cash book can be of four types:  
1. Simple Cash Book.  
2. Two column cash book.  
3. Three column cash book.  
4. Petty cash book     
14.4.1 SIMPLE CASH BOOK  
A simple cash book is prepared like any ordinary account. The receipts are 
recorded in the Dr Side and the payments are recorded in the Cr side of the 
cash book. The specimen Performa of a simple cash book is given as follows:  
 212
 
Simple Cash Book 
Dr. Receipts   Payments Cr. 
Date Particulars Amt. Date Particulars Amt 
  Rs.   Rs. 
 
 
 
 
 
 
 
     
 
Balancing the Cash Book  
The Cash book is balanced like any other account. The receipts column total 
will be more than the payments column total. The difference will be written on 
the Cr. Side as “By Bal c/d”. 
 
Example 1 
Enter the following transactions in a simple cash Book.  
2006  Rs.  
Jan 1  Cash in hand  12,000 
Jan 5  Received from Ram  3,000 
Jan 7  Paid Rent t 300 
Jan 8  Sold goods  7000 
Jan 10  Paid Shyam                     2000 
     
Simple Cash Book 
Dr. Receipts   Payments Cr. 
Date Particulars Amt. Date Particulars Amt 
2006  Rs. 2006  Rs. 
12,000 
3,000 
7,000 
300 
2,000 
17,000 
Jan 1 
Jan 5 
Jan 8  
 
To Bal b/d 
To Ram  
To Sales  
22,000 
Jan 7  
Jan 10 
Jan 31  
By Rent  
By Shyam 
By Bal C/d  
22,000 
 
Check your progress 
Activity I       
Find out the monthly expenses and incomes of your family and prepare a cash 
book for a particular month. 
…………………………………………………………………………………
…………………………………………………………………………………
Page 4


 211
LESSON 14:   
CASH BOOK, PASS BOOK, BANK 
RECONCILIATION STATEMENT 
Dr. Jyotsna Sethi, Rekha Rani 
STRUCTURE 
14.1 Introduction 
14.2 Objectives  
14.3 Cash Book  
14.4 Types of Cash Book  
14.4.1 Simple Cash Book 
14.4.2 Two Column Cash Book 
14.4.3 Three Column Cash Book  
14.5 Petty Cash Book.  
14.5.1. Imprest System of Petty Cash Book. 
14.5.2 Advantages of Petty Cash Book  
14.6 Pass Book  
14.7.  Bank Reconciliation Statement  
14.7.1  Meaning  
14.7.2. Causes for difference between Cash Book Balance and Pass 
Book Balance.  
14.7.3. Need and importance of Bank Reconciliation Statement  
14.7.4  Procedure for preparation of Bank Reconciliation Statement.  
14.8.  Summary  
14.9.  Glossary  
14.10.  Self Assessment Questions  
14.11.  Answer to check your progress  
14.12.  Further Readings  
 
14.1. INTRODUCTION 
Every entrepreneur should have knowledge of cash book and pass book as 
from these books, he may check how much balance is available to him for 
meeting his expenses and liabilities and what are the details of receipts and 
payments of a particular period. With the details of payments it can be 
checked that whether the payments are of reasonable amount or not. If the 
expanses are unreasonably high he may take steps to control them. An 
 211
entrepreneur who regularly checks his cash and bank balances would never 
face problems like dishonor of cheques or cash crisis etc. Entrepreneur, who 
doesn’t distinguish between his revenue and profits, may spend all his receipts 
for his personal purposes subsequently resulting in deficiency of cash for 
business purposes and lead to cash crisis. 
 
14.2. OBJECTIVES  
After going through this lesson you should be able to  
 Explain the meaning of Cash Book, Pass Book, and Petty Cash Book.  
 Discuss the types of cash book.  
 Enter the transactions in Cash Book.  
 Explain the meaning, need and importance of bank reconciliation 
statement.  
 Discuss the causes for difference between the balances of Pass Book 
and Cash Book.  
 Prepare bank reconciliation statement. 
 
14.3 CASH BOOK 
In business most of the transactions relate to receipt of cash, payments of cash, 
sale of goods and purchase of goods. So it is convenient to have separate 
books for each such class of transaction, one for receipts and payments of 
cash, one for purchase of goods and one for sale of goods.  These books are 
called subsidiary books.  
Cash book is a subsidiary book which records the receipts and payment of 
cash. With the help of cash book cash and bank balance can be checked at my 
point of time.                                
                     (Ref.: T.S. Grewal, “Double Entry Book Keeping”) 
 
14.4. TYPES OF CASH BOOK  
Cash book can be of four types:  
1. Simple Cash Book.  
2. Two column cash book.  
3. Three column cash book.  
4. Petty cash book     
14.4.1 SIMPLE CASH BOOK  
A simple cash book is prepared like any ordinary account. The receipts are 
recorded in the Dr Side and the payments are recorded in the Cr side of the 
cash book. The specimen Performa of a simple cash book is given as follows:  
 212
 
Simple Cash Book 
Dr. Receipts   Payments Cr. 
Date Particulars Amt. Date Particulars Amt 
  Rs.   Rs. 
 
 
 
 
 
 
 
     
 
Balancing the Cash Book  
The Cash book is balanced like any other account. The receipts column total 
will be more than the payments column total. The difference will be written on 
the Cr. Side as “By Bal c/d”. 
 
Example 1 
Enter the following transactions in a simple cash Book.  
2006  Rs.  
Jan 1  Cash in hand  12,000 
Jan 5  Received from Ram  3,000 
Jan 7  Paid Rent t 300 
Jan 8  Sold goods  7000 
Jan 10  Paid Shyam                     2000 
     
Simple Cash Book 
Dr. Receipts   Payments Cr. 
Date Particulars Amt. Date Particulars Amt 
2006  Rs. 2006  Rs. 
12,000 
3,000 
7,000 
300 
2,000 
17,000 
Jan 1 
Jan 5 
Jan 8  
 
To Bal b/d 
To Ram  
To Sales  
22,000 
Jan 7  
Jan 10 
Jan 31  
By Rent  
By Shyam 
By Bal C/d  
22,000 
 
Check your progress 
Activity I       
Find out the monthly expenses and incomes of your family and prepare a cash 
book for a particular month. 
…………………………………………………………………………………
…………………………………………………………………………………
 213
…………………………………………………………………………………
…………………………………………………………………………………
………………………………………………………………………………… 
 
Q 1.  Enter the following transactions in the simple cash book.  
2005  Rs.  
Dec 1.    Cash in Hand  10,000 
Dec 2 Received from Ramesh  13,000 
Dec 3 Purchased Furniture  15,000 
Dec 4 Machinery Sold  10,000 
Dec 5 Goods sold  20,000 
Dec 6 Salaries paid   1,000 
 
…………………………………………………………………………………
…………………………………………………………………………………
…………………………………………………………………………………
…………………………………………………………………………………
………………………………………………………………………………… 
 
14.4.2. TWO COLUMN CASH BOOK  
A two – column cash back records discount allowed and discount received 
along with the cash payments and cash receipts.  
Discount allowed is the concession given by the businessman to its customers 
or debtors e.g. if a debtor has to pay Rs. 10,000 and he is allowed 10% 
discount, now he will pay only Rs. 9000 to the firm. This is called discount 
allowed, it is a type of loss for the business so it is to be debited and recorded 
in Dr. Side of the cash book. Discount received is the concession received by 
the business man from the creditors. e.g. if a firm has to pay  Rs. 50,000 to its 
creditors and discount received is 20% then the firm has to pay only Rs. 
40,000 to the creditor. This is called discount received, it is  a gain or profit  
for the firm  so it is  to be credited and recorded in the  Cr. side of the cash 
book the specimen Performa of a two column cash Book is given as under –  
   
              Two column Cash Book  
Dr Receipts                                        Payments             Cr  
Date  Particulars Amount 
Dis.  
Amount 
Cash  
Date  Particular  Amt. 
Dis.  
Amt. 
Cash  
        
 
 
Page 5


 211
LESSON 14:   
CASH BOOK, PASS BOOK, BANK 
RECONCILIATION STATEMENT 
Dr. Jyotsna Sethi, Rekha Rani 
STRUCTURE 
14.1 Introduction 
14.2 Objectives  
14.3 Cash Book  
14.4 Types of Cash Book  
14.4.1 Simple Cash Book 
14.4.2 Two Column Cash Book 
14.4.3 Three Column Cash Book  
14.5 Petty Cash Book.  
14.5.1. Imprest System of Petty Cash Book. 
14.5.2 Advantages of Petty Cash Book  
14.6 Pass Book  
14.7.  Bank Reconciliation Statement  
14.7.1  Meaning  
14.7.2. Causes for difference between Cash Book Balance and Pass 
Book Balance.  
14.7.3. Need and importance of Bank Reconciliation Statement  
14.7.4  Procedure for preparation of Bank Reconciliation Statement.  
14.8.  Summary  
14.9.  Glossary  
14.10.  Self Assessment Questions  
14.11.  Answer to check your progress  
14.12.  Further Readings  
 
14.1. INTRODUCTION 
Every entrepreneur should have knowledge of cash book and pass book as 
from these books, he may check how much balance is available to him for 
meeting his expenses and liabilities and what are the details of receipts and 
payments of a particular period. With the details of payments it can be 
checked that whether the payments are of reasonable amount or not. If the 
expanses are unreasonably high he may take steps to control them. An 
 211
entrepreneur who regularly checks his cash and bank balances would never 
face problems like dishonor of cheques or cash crisis etc. Entrepreneur, who 
doesn’t distinguish between his revenue and profits, may spend all his receipts 
for his personal purposes subsequently resulting in deficiency of cash for 
business purposes and lead to cash crisis. 
 
14.2. OBJECTIVES  
After going through this lesson you should be able to  
 Explain the meaning of Cash Book, Pass Book, and Petty Cash Book.  
 Discuss the types of cash book.  
 Enter the transactions in Cash Book.  
 Explain the meaning, need and importance of bank reconciliation 
statement.  
 Discuss the causes for difference between the balances of Pass Book 
and Cash Book.  
 Prepare bank reconciliation statement. 
 
14.3 CASH BOOK 
In business most of the transactions relate to receipt of cash, payments of cash, 
sale of goods and purchase of goods. So it is convenient to have separate 
books for each such class of transaction, one for receipts and payments of 
cash, one for purchase of goods and one for sale of goods.  These books are 
called subsidiary books.  
Cash book is a subsidiary book which records the receipts and payment of 
cash. With the help of cash book cash and bank balance can be checked at my 
point of time.                                
                     (Ref.: T.S. Grewal, “Double Entry Book Keeping”) 
 
14.4. TYPES OF CASH BOOK  
Cash book can be of four types:  
1. Simple Cash Book.  
2. Two column cash book.  
3. Three column cash book.  
4. Petty cash book     
14.4.1 SIMPLE CASH BOOK  
A simple cash book is prepared like any ordinary account. The receipts are 
recorded in the Dr Side and the payments are recorded in the Cr side of the 
cash book. The specimen Performa of a simple cash book is given as follows:  
 212
 
Simple Cash Book 
Dr. Receipts   Payments Cr. 
Date Particulars Amt. Date Particulars Amt 
  Rs.   Rs. 
 
 
 
 
 
 
 
     
 
Balancing the Cash Book  
The Cash book is balanced like any other account. The receipts column total 
will be more than the payments column total. The difference will be written on 
the Cr. Side as “By Bal c/d”. 
 
Example 1 
Enter the following transactions in a simple cash Book.  
2006  Rs.  
Jan 1  Cash in hand  12,000 
Jan 5  Received from Ram  3,000 
Jan 7  Paid Rent t 300 
Jan 8  Sold goods  7000 
Jan 10  Paid Shyam                     2000 
     
Simple Cash Book 
Dr. Receipts   Payments Cr. 
Date Particulars Amt. Date Particulars Amt 
2006  Rs. 2006  Rs. 
12,000 
3,000 
7,000 
300 
2,000 
17,000 
Jan 1 
Jan 5 
Jan 8  
 
To Bal b/d 
To Ram  
To Sales  
22,000 
Jan 7  
Jan 10 
Jan 31  
By Rent  
By Shyam 
By Bal C/d  
22,000 
 
Check your progress 
Activity I       
Find out the monthly expenses and incomes of your family and prepare a cash 
book for a particular month. 
…………………………………………………………………………………
…………………………………………………………………………………
 213
…………………………………………………………………………………
…………………………………………………………………………………
………………………………………………………………………………… 
 
Q 1.  Enter the following transactions in the simple cash book.  
2005  Rs.  
Dec 1.    Cash in Hand  10,000 
Dec 2 Received from Ramesh  13,000 
Dec 3 Purchased Furniture  15,000 
Dec 4 Machinery Sold  10,000 
Dec 5 Goods sold  20,000 
Dec 6 Salaries paid   1,000 
 
…………………………………………………………………………………
…………………………………………………………………………………
…………………………………………………………………………………
…………………………………………………………………………………
………………………………………………………………………………… 
 
14.4.2. TWO COLUMN CASH BOOK  
A two – column cash back records discount allowed and discount received 
along with the cash payments and cash receipts.  
Discount allowed is the concession given by the businessman to its customers 
or debtors e.g. if a debtor has to pay Rs. 10,000 and he is allowed 10% 
discount, now he will pay only Rs. 9000 to the firm. This is called discount 
allowed, it is a type of loss for the business so it is to be debited and recorded 
in Dr. Side of the cash book. Discount received is the concession received by 
the business man from the creditors. e.g. if a firm has to pay  Rs. 50,000 to its 
creditors and discount received is 20% then the firm has to pay only Rs. 
40,000 to the creditor. This is called discount received, it is  a gain or profit  
for the firm  so it is  to be credited and recorded in the  Cr. side of the cash 
book the specimen Performa of a two column cash Book is given as under –  
   
              Two column Cash Book  
Dr Receipts                                        Payments             Cr  
Date  Particulars Amount 
Dis.  
Amount 
Cash  
Date  Particular  Amt. 
Dis.  
Amt. 
Cash  
        
 
 
 214
Note:  
Discount columns are not balanced they are merely totaled.  
 
Example 2:  
Enter the following transactions in a two column ash Book.  
 
2005   Rs.  
Jan 1  Cash in hand  15,000 
Jan 5 Paid to Ram  3,000 
Jan 5 Discount allowed by him  100 
Jan 6  Purchased goods  4,000  
Jan 10  Received from R. Gupta  9,800 
Jan 10  Discount allowed  200 
Jan 11 Sold goods  4,000 
Jan 12  Paid to S. Sharma  2,950  
 Discount received Rs. 50                                        50 
Jan 13  Paid wages  500 
Jan 14  Paid to Naresh in full settlement of his  
 Account which shows a Cr. Balance of  
  Rs. 4000                                                             3900 
 
Two Column Cash Book  
Dr Receipts                                        Payments               Cr  
Date 
2005 
Particulars Amt 
Dis. 
Rs 
Amt 
Cash 
Rs 
Date  
2005 
Particulars Amt 
Dis. 
Amt 
Cash 
Jan 1 
Jan 10 
Jan 11 
To Bal b/d 
To R. Gupta 
To sales  
- 
200 
- 
15,000 
9,800 
4,000 
Jan 5 
Jan 6 
Jan 12 
Jan 13 
Jan 14 
Jan 31 
By Ram  
Purchases 
By S. Sharma 
By Wages 
By Naresh 
By  Bal c/d 
100 
- 
50 
 
100 
3,000 
4,000 
2,950 
500 
3,900 
14,450 
  200 28,800   250 28,800 
 
Check your   progress 
Q 2. X started business on 1.4.2005 with Rs. 20,000 as Capital. He had 
following cash transactions in the month of April 2005.  
 
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FAQs on Cash Book, Pass Book and Bank Reconciliation Statement, Accountancy - Class 11

1. What is a cash book and how is it used in accounting?
Ans. A cash book is a subsidiary book that records all cash transactions of a business. It includes both cash receipts and cash payments. It helps in maintaining a record of daily cash transactions and assists in maintaining the cash balance of the business. The cash book is used to prepare the bank reconciliation statement and to verify the accuracy of cash transactions.
2. What is a pass book and how does it differ from a cash book?
Ans. A pass book is a record of all transactions related to a bank account maintained by a bank. It is issued by the bank to the account holder and contains details of all deposits, withdrawals, interest earned, and bank charges. The pass book is updated by the bank after each transaction. On the other hand, a cash book is maintained by the business itself and records all cash transactions. The cash book is used to prepare the bank reconciliation statement and verify the accuracy of cash transactions.
3. What is a bank reconciliation statement and why is it important in accounting?
Ans. A bank reconciliation statement is a statement that compares the balance as per the cash book with the balance as per the pass book (bank statement). It identifies the differences between these two balances and reconciles them. It is important in accounting because it helps in detecting errors, omissions, and discrepancies in the cash records of a business. It ensures that the cash balance in the books of accounts matches the cash balance in the bank statement.
4. What are the reasons for differences between the cash book balance and the pass book balance?
Ans. There can be several reasons for differences between the cash book balance and the pass book balance. Some common reasons include: - Bank charges or interest not recorded in the cash book - Cheques issued but not yet presented for payment - Cheques deposited but not yet cleared by the bank - Errors in recording transactions in either the cash book or the pass book - Direct deposits or withdrawals made by the bank without informing the account holder
5. How often should bank reconciliation be done and what are the steps involved in the process?
Ans. Bank reconciliation should ideally be done on a monthly basis or at least every time the bank statement is received. The steps involved in the bank reconciliation process are: 1. Compare the cash book balance with the bank statement balance. 2. Identify and list the items that appear in one but not in the other. 3. Adjust the balances by adding or deducting these items from the respective balances. 4. Verify and reconcile the adjusted balances to match the cash book balance with the bank statement balance. 5. Record any necessary adjustments in the cash book or inform the bank about any discrepancies.
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