Bank Reconciliation Statement:

Introduction:
A bank reconciliation statement is a document that compares the cash balance in an organization's cash book to the balance in its bank statement. It helps to identify any differences or discrepancies between the two records.

Differences Noted:
Upon comparing the cash book with the pass book, the following differences were noted:

1. Cheques Deposited:
- Cash and cheques amounting to 1340 were sent to the bank on 27th January.
- However, cheques worth 230rs were credited on 2nd February.
- This means that the bank took a few days to process the cheques and credit them to the account.

2. Dishonored Cheque:
- One cheque for 45rs was returned by the bank as dishonored on 4th February.
- A dishonored cheque means that the bank did not honor the payment due to insufficient funds, a mismatched signature, or other reasons.
- As a result, the amount of this cheque needs to be deducted from the cash book balance.

Analysis:
To reconcile the differences between the cash book and the pass book, the following adjustments need to be made:

1. Cheque Deposited:
- The cheques worth 1340rs were sent to the bank on 27th January.
- However, only 230rs were credited on 2nd February.
- The remaining amount of 1110rs (1340rs - 230rs) should be added to the cash book balance.

2. Dishonored Cheque:
- The dishonored cheque worth 45rs needs to be deducted from the cash book balance.

Reconciliation Process:
To reconcile the cash book with the pass book, the following steps can be followed:

1. Add Outstanding Deposits:
- Add the amount of the outstanding deposits (cheques sent to the bank but not yet credited) to the cash book balance.

2. Deduct Outstanding Payments:
- Deduct the amount of any outstanding payments (cheques issued but not yet cleared by the bank) from the cash book balance.

3. Adjust for Bank Charges:
- If there are any bank charges or fees debited by the bank in the pass book, deduct them from the cash book balance.

4. Compare Balances:
- After making all the necessary adjustments, compare the adjusted cash book balance with the balance in the pass book.

5. Prepare Reconciliation Statement:
- Prepare a bank reconciliation statement that clearly shows the differences between the cash book and the pass book.
- This statement should include a detailed explanation of the adjustments made and the resulting reconciled balance.

Conclusion:
Bank reconciliation is an important process to ensure the accuracy of an organization's financial records. By comparing the cash book with the pass book and making necessary adjustments, any discrepancies can be identified and resolved. This helps in maintaining accurate cash balances and ensures proper financial management.