Bank Reconciliation Statement: A Super Simple Technique

Rule 1

Cash Book

Debit Side	Credit Side
Shows all the receipts	Shows all the payments or expenses

Pass Book

Debit Side	Credit Side
Shows all the withdrawals (expenses for the bank)	Shows all the deposits and collections (receipts for the bank)

Rule 2

Bank Reconciliation Statement: For Balance or Overdraft as per cash book

Balance as per cash book	XXXX
Add: All those transactions that decrease the cash book OR Cashbook < Pass Book, then ADD	XXX
Less: All those transactions that increase the cash book OR Cashbook > Pass Book, then deduct	(XXX)
Balance as per passbook	XXXX

Overdraft as per cash book	(XXXX)
Add: All those transactions that decrease the cash book OR Cashbook < Pass Book, then ADD	XXX
Less: All those transactions that increase the cash book OR Cashbook > Pass Book, then deduct	(XXX)
Overdraft as per passbook	XXXX

Bank Reconciliation Statement: For Balance or Overdraft as per passbook

Balance as per Passbook	XXXX
Add: All those transactions that decrease the passbook OR Pass Book < Cash Book, then ADD	XXX
Less: All those transactions that increase the passbook OR Pass Book > Cash Book, then deduct	(XXX)
Balance as per cash book	XXXX

Overdraft as per Passbook	(XXXX)
Add: All those transactions that decrease the passbook OR Pass Book < Cash Book, then ADD	XXX
Less: All those transactions that increase the passbook OR Pass Book > Cash Book, then deduct	(XXX)
Overdraft as per cash book	XXXX