Bank Reconciliation Statement
A Bank Reconciliation Statement (BRS) explains, line by line, why your cash book balance and bank statement balance differ — and confirms that your books are accurate.
Learning to reconcile a bank account trains the core audit mindset — independently verifying records — which is tested every year in your board exam and is the first practical skill demanded in CA Foundation, B.Com, and any finance job.
Concept
Lots of students think…
"Bank charges automatically appear in both the bank statement and the cash book, so no extra entry is needed."
Actually…
The bank deducts charges directly from your account and shows them on the statement, but your cash book has no way of knowing this until you check it. You must manually enter the bank charge in your cash book — until you do, the cash book overstates your balance by that amount.
By the end of this chapter you will know why your cash book and your bank statement almost never show the same balance — and how to write a Bank Reconciliation Statement (BRS) that explains every single rupee of difference.
Two records, same money
Every time a business deposits or withdraws money, two records get updated: the business's own cash book and the bank's statement. In theory both should show the same closing balance. In practice they almost never match on the same date — and that is completely normal.
Meera runs a coconut oil shop in Thrissur. On 31 March her cash book says ₹75,000 but her South Indian Bank statement says ₹82,500. Same account, same dates, different numbers — this gap is what a BRS will explain.
Outstanding cheques
When you write a cheque and record it in your cash book, your balance drops immediately. But the bank only reduces your account when the person you paid actually deposits that cheque. Until then, the bank's balance is higher than your cash book balance — the cheque is called 'outstanding'.
Meera issued a cheque of ₹12,000 to her packaging supplier on 29 March. She recorded it in her cash book the same day. But the supplier has not gone to the bank yet. So on 31 March the bank still shows that ₹12,000 as sitting in Meera's account — making the bank balance look ₹12,000 bigger than her cash book.
Deposits in transit
Sometimes you deposit cash or a cheque late in the day and record it in your cash book right away. But if you deposit after banking hours, the bank will only credit it the next working day. Until then, your cash book balance is higher than the bank's — this is called a 'deposit in transit'.
Meera deposited ₹4,000 cash at the South Indian Bank counter on 31 March at 5:30 PM — after the branch had closed for same-day processing. She recorded it in her cash book immediately. The bank will only credit it on 1 April, so on 31 March the bank statement does not show it yet.
Bank charges you forgot about
Banks quietly deduct fees — annual maintenance charges, SMS alerts, locker rent, returned cheque penalties — directly from your account. These appear on the bank statement straight away. But your cash book does not know about them until you check the statement and add the entry yourself. Until you do, your cash book overstates your real balance.
The South Indian Bank deducted ₹500 from Meera's account as an annual maintenance charge on 31 March. The bank statement shows it. Meera's cash book does not — she forgot to record it. So her cash book shows ₹500 more than it should.
Building the BRS step by step
The SCERT Kerala method starts with your cash book balance and adjusts it until it equals the bank statement balance. Add outstanding cheques (the bank still has that money). Deduct deposits in transit (the bank hasn't credited them yet). Deduct bank charges (the bank already took them, your cash book hasn't). When the final figure matches the bank statement, you're done.
Meera's BRS: Start with cash book balance ₹75,000. Add outstanding cheque ₹12,000 → ₹87,000. Deduct deposit in transit ₹4,000 → ₹83,000. Deduct bank charge ₹500 → ₹82,500. This matches her bank statement exactly. Every rupee of the gap is explained.
Why BRS catches real errors
Timing differences resolve on their own — no action needed. But a BRS also catches real problems: a cheque entered twice in your cash book, a bank charge you never knew about, or even a transaction the bank processed by mistake. These genuine errors need a correcting journal entry in your cash book.
Arun's electronics repair shop in Ernakulam had a ₹5,000 cheque entered twice in his cash book by mistake. His BRS showed a ₹5,000 gap that could not be explained by timing alone — and that's how he caught the duplicate entry before it became a bigger problem.
Common exam mistake to avoid
Many students add deposits in transit to reach the bank statement balance — but that is wrong. Think it through: the bank has not credited the deposit yet, so the bank balance is already lower than your cash book. To go from cash book to bank statement you must deduct deposits in transit, not add them. Outstanding cheques go the other way — add them, because the bank still has that money.
In a board exam question: cash book ₹40,000, outstanding cheque ₹8,000, deposit in transit ₹3,000, bank charge ₹200. BRS = ₹40,000 + ₹8,000 − ₹3,000 − ₹200 = ₹44,800. If you accidentally add the deposit in transit you get ₹51,200 — the wrong answer, losing easy marks.
Notes
A business and its bank keep two records of the same money, and on any given date they rarely agree. The difference is usually not an error — it is TIMING. A Bank Reconciliation Statement explains the gap item by item, starting from one balance and arriving at the other. SCERT Kerala teaches the cash-book-to-bank-statement format, and preparing it monthly is what catches unrecorded charges, double entries and bank errors early.
Key terms & definitions
- Bank Reconciliation Statement (BRS)
- A statement prepared on a particular date to explain the difference between the bank balance shown by the cash book and that shown by the bank statement (pass book).
- Cash book (bank column)
- The business's own record of deposits made and cheques issued. It is the firm's version of its bank balance.
- Bank statement / Pass book
- The bank's record of the same account, sent to the customer. From the bank's angle a customer's deposit is a liability, so the two records mirror each other.
- Outstanding cheque (cheque issued but not presented)
- A cheque the firm has written and already deducted in its cash book, which the payee has not yet presented to the bank.
- Deposit in transit (cheque deposited but not credited)
- Money the firm has deposited and already added in its cash book, which the bank has not yet processed or cleared.
- Bank charges
- Fees the bank deducts directly — service charges, cheque-book charges, commission — which the firm learns of only when it sees the statement.
- Direct deposit / direct collection
- Amounts the bank collects on the firm's behalf, such as interest, dividends or a customer's direct transfer, and credits without the firm knowing.
- Standing instruction
- A payment the bank makes automatically on the firm's behalf — insurance premium, EMI, electricity — which the firm may not yet have recorded.
- Dishonoured cheque
- A cheque deposited and already recorded as received which the bank returns unpaid, so the bank never credited the amount.
- Favourable balance
- A debit balance in the cash book, matched by a credit balance in the bank statement — the normal position where the firm has money in the bank.
- Overdraft
- A credit balance in the cash book and a debit balance in the bank statement — the firm owes the bank. All adjustments reverse in direction.
- Timing difference
- A difference caused solely because one party has recorded an item that the other has not yet processed. It corrects itself in time and is not an error.
Why two records of the same money disagree
- The firm records every deposit and every cheque issued in its cash book, on the day it acts.
- The bank records the same items on the day IT processes them — which may be days later or never, if a cheque is not presented.
- The mismatch is therefore usually a TIMING DIFFERENCE, not a mistake by either side.
- A second, smaller group of causes is items known only to the bank — charges, interest, direct collections.
- A third, rarest group is genuine ERRORS, in the cash book or by the bank.
The main causes, grouped
- TIMING: cheques issued but not yet presented; cheques deposited but not yet cleared.
- KNOWN ONLY TO THE BANK — INCREASING the bank balance: interest credited, dividends or customer payments collected directly.
- KNOWN ONLY TO THE BANK — REDUCING the bank balance: bank charges, commission, standing-instruction payments, a dishonoured cheque returned.
- ERRORS: a wrong amount entered in the cash book, an item entered twice, or a mistake by the bank itself.
- Identify which group an item belongs to and the direction of the adjustment follows automatically.
The logic that decides add or deduct
- Ask one question: compared with my cash book, is the BANK's balance higher or lower because of this item?
- If the bank's balance is HIGHER → ADD when starting from the cash book.
- If the bank's balance is LOWER → DEDUCT when starting from the cash book.
- CHEQUE ISSUED NOT PRESENTED: I deducted it, the bank has not → bank is HIGHER → ADD.
- DEPOSIT NOT YET CREDITED: I added it, the bank has not → bank is LOWER → DEDUCT.
- BANK CHARGES: the bank deducted, I have not → bank is LOWER → DEDUCT.
- INTEREST CREDITED BY BANK: the bank added, I have not → bank is HIGHER → ADD.
- Never memorise a list — derive each line from this one question and you cannot go wrong.
Worked BRS — Priya's stationery shop, Thiruvananthapuram
- Cash book balance on 30 June: ₹48,700. Bank statement: ₹52,000. Difference ₹3,300 to be explained.
- Cheque of ₹5,000 written on 28 June, not yet presented → bank is higher → ADD ₹5,000.
- Cash ₹1,500 deposited on the evening of 30 June, processed 1 July → bank is lower → DEDUCT ₹1,500.
- Bank service charges ₹200 not yet in the cash book → bank is lower → DEDUCT ₹200.
- STATEMENT: 48,700 + 5,000 − 1,500 − 200 = ₹52,000, which agrees with the bank statement. ✔
- Every rupee of the ₹3,300 gap is now explained by a named item.
Meera's coconut oil business, Thrissur — reading the direction
- Cash book on 31 March ₹75,000; South Indian Bank statement ₹82,500.
- The bank shows MORE, which is the signature of unpresented cheques.
- A ₹12,000 cheque issued to her packaging supplier on 29 March had not been presented → add ₹12,000.
- When the bank's figure is higher than yours, look first for cheques you issued that have not been cashed.
- When YOUR figure is higher, look first for deposits not yet cleared, and for charges the bank has taken.
Format of the statement
- Head it: 'Bank Reconciliation Statement as at ......' — the date is part of the answer.
- Start with a clearly labelled opening balance: 'Balance as per Cash Book'.
- List each adjusting item on its own line with its own description; use separate Add and Less groupings.
- End with 'Balance as per Bank Statement' and confirm that it equals the given figure.
- Working in tabular form with an amount column for additions and one for deductions is the expected presentation.
Starting from the other end
- A question may instead give the bank statement balance and ask for the cash book balance.
- Every adjustment simply REVERSES: what you added before, you now deduct, and vice versa.
- Cheque issued not presented: starting from the bank statement, DEDUCT it.
- Bank charges: starting from the bank statement, ADD them back.
- The safest method is to state the direction from first principles each time rather than recalling a memorised table.
Overdraft — when the balance is negative
- An overdraft means the firm owes the bank: a CREDIT balance in the cash book, a DEBIT balance in the bank statement.
- An overdraft is conventionally written as a minus figure or clearly labelled 'Overdraft'.
- Every adjustment works in the OPPOSITE direction to a favourable balance.
- Safest approach: treat the overdraft as a negative opening figure and apply the same 'is the bank higher or lower?' test unchanged — the arithmetic then takes care of itself.
- Always state clearly in your final line whether the closing figure is a balance or an overdraft.
Why a BRS is worth preparing every month
- It catches bank charges and standing-instruction payments the firm has not recorded, so the cash book can be updated.
- It reveals double entries and arithmetic errors in the firm's own books.
- It detects forged or unauthorised cheques early, before losses grow.
- It confirms that cheques sent to suppliers have actually been collected.
- It is the routine control that keeps the cash book trustworthy — which matters because the cash book feeds the trial balance and the final accounts.
Three misconceptions to clear
- WRONG: 'Outstanding cheques should be deducted from the bank statement because we have already paid them.' In fact the bank has NOT yet paid, so its balance is still higher — starting from the cash book you ADD.
- WRONG: 'If the two do not agree, someone has blundered and must fix it.' Most differences are timing differences that settle themselves; the BRS explains them, it does not correct them.
- WRONG: 'Bank charges appear automatically in both records.' The bank deducts them at its end; the firm learns of them only from the statement and must then record them in the cash book.
Formulas & formats
- Bank Reconciliation Statement as at .......... Balance as per Cash Book ₹ XXX ADD: Cheques issued but not yet presented ₹ XXX Interest / dividend credited by bank ₹ XXX Amounts collected directly by the bank ₹ XXX LESS: Cheques deposited but not yet credited (₹ XXX) Bank charges and commission (₹ XXX) Standing-instruction payments (₹ XXX) Cheques deposited but dishonoured (₹ XXX) Balance as per Bank Statement ₹ XXX
- The single decision rule: Is the BANK's balance higher or lower because of this item? Higher → ADD (when starting from the cash book) Lower → DEDUCT
- Starting from the bank statement instead: Every adjustment REVERSES direction
- Worked check — Priya, 30 June: 48,700 + 5,000 − 1,500 − 200 = 52,000 ✔
- Balance types: Favourable : Cash book DEBIT balance = Bank statement CREDIT balance Overdraft : Cash book CREDIT balance = Bank statement DEBIT balance
Important questions & model answers
What is a Bank Reconciliation Statement?
2 marks- A Bank Reconciliation Statement is a statement prepared on a particular date to reconcile the bank balance shown by the cash book with the balance shown by the bank statement or pass book.
- It sets out, item by item, the reasons for the difference between the two balances, so that the accuracy of both records can be confirmed.
State any four reasons why the cash book balance and the bank statement balance may differ.
4 marks- Cheques issued by the firm and entered in the cash book, but not yet presented for payment at the bank.
- Cheques deposited and entered in the cash book, but not yet collected or credited by the bank.
- Bank charges, commission or interest debited by the bank but not yet entered in the cash book.
- Interest, dividends or customer payments collected directly by the bank and credited without the firm's knowledge.
- Payments made by the bank under standing instructions, and cheques deposited but later dishonoured.
- Errors committed either in the cash book or by the bank.
Priya's cash book shows ₹48,700 on 30 June. Her bank statement shows ₹52,000. A cheque of ₹5,000 issued on 28 June was not presented; ₹1,500 deposited on 30 June evening was credited on 1 July; bank charges ₹200 were not recorded. Prepare the BRS.
5 marks- Bank Reconciliation Statement as at 30 June
- Balance as per Cash Book .................................. ₹48,700
- Add: Cheque issued but not yet presented ................ ₹ 5,000
- Less: Cheque/cash deposited but not yet credited ........ ₹ 1,500
- Less: Bank charges not recorded in the cash book ........ ₹ 200
- Balance as per Bank Statement ............................ ₹52,000
- Working: 48,700 + 5,000 − 1,500 − 200 = ₹52,000, which agrees with the bank statement. ✔
Why is a cheque issued but not presented ADDED when the BRS starts from the cash book?
3 marks- When the firm issues a cheque it immediately credits (reduces) its cash book balance.
- The bank, however, reduces the account only when the payee actually presents the cheque for payment.
- Until then the bank's balance remains HIGHER than the cash book balance by the amount of that cheque.
- Therefore, to move from the lower cash book figure to the higher bank figure, the amount must be ADDED.
- It is a timing difference and disappears of its own accord once the cheque is presented.
Distinguish between a favourable balance and a bank overdraft.
3 marks- A FAVOURABLE balance means the firm has money in the bank. It appears as a DEBIT balance in the cash book and a CREDIT balance in the bank statement.
- An OVERDRAFT means the firm has drawn more than it has and owes the bank. It appears as a CREDIT balance in the cash book and a DEBIT balance in the bank statement.
- In preparing a BRS for an overdraft, every adjustment operates in the opposite direction to a favourable balance.
- The final answer must state clearly whether the closing figure is a balance or an overdraft.
Meera's cash book on 31 March shows ₹75,000 while her bank statement shows ₹82,500. State the most likely reason and explain the direction of the adjustment.
3 marks- The bank statement shows MORE than the cash book, which most commonly happens when cheques issued by the firm have not yet been presented for payment.
- Meera issued a cheque of ₹12,000 to her packaging supplier on 29 March which had not been presented by 31 March.
- She has already deducted it in her cash book; the bank has not yet deducted it, so the bank's balance is higher.
- Starting from the cash book balance, the ₹12,000 is therefore ADDED.
'A difference between the cash book and the bank statement always means someone has made an error.' Do you agree? Give reasons.
3 marks- No, this is not correct.
- Most differences are TIMING DIFFERENCES — an item recorded by one party which the other has not yet processed, such as an unpresented cheque or an uncleared deposit.
- These correct themselves automatically as soon as the bank processes the item; nothing needs to be put right.
- Some differences arise because the bank knows of items the firm does not, such as charges or direct collections — these require the CASH BOOK to be updated, not corrected.
- Only a minority of differences are genuine errors, in the cash book or by the bank.
State any three advantages of preparing a Bank Reconciliation Statement regularly.
3 marks- It brings to light bank charges, interest and standing-instruction payments not yet recorded, so the cash book can be brought up to date.
- It reveals errors and omissions such as double entries or wrong amounts in the firm's own records.
- It helps detect forged, unauthorised or delayed cheques early, reducing the risk of loss and fraud.
- It confirms that cheques issued to suppliers have actually been collected, and so improves control over cash.
How are bank charges treated in a BRS starting from the cash book, and why?
2 marks- Bank charges are DEDUCTED from the cash book balance.
- The bank has already debited the charges to the account, so its balance is lower, while the firm has not yet recorded them.
- Once identified, the firm should also enter the charges in its cash book so that future balances agree.
A cheque of ₹8,000 deposited by the firm was returned dishonoured by the bank. How is it treated in the BRS prepared from the cash book balance, and why?
3 marks- It is DEDUCTED from the cash book balance.
- When the cheque was deposited the firm increased its cash book balance by ₹8,000, expecting to receive the money.
- The bank, having found the cheque unpaid, never credited the amount — so the bank's balance is lower than the cash book by ₹8,000.
- The firm should also reverse the original entry in its cash book and reinstate the debtor, since the amount has not in fact been received.
Exam tips
- Always head the statement 'Bank Reconciliation Statement as at <date>' — the title and date carry a presentation mark.
- Do not memorise an add/deduct list. For each item ask: 'is the BANK higher or lower because of this?' Higher → add, lower → deduct.
- Name each item in full on its own line ('Cheque issued but not yet presented'), not just an amount — the description is marked.
- Show your final total and state explicitly that it agrees with the given bank statement figure.
- Read the question carefully to see WHICH balance you are starting from. If you start from the bank statement, every direction reverses.
- For an overdraft, label it clearly and remember all adjustments reverse; write 'Overdraft' next to the final figure.
- Present Add items and Less items in separate groups rather than mixing them — examiners expect the tabular layout.
Quick revision
- The cash book is the firm's record; the bank statement is the bank's record of the same account.
- Most differences are TIMING differences, not errors.
- Decision rule: is the bank's balance higher or lower? Higher → add; lower → deduct (starting from the cash book).
- Cheque issued not presented → ADD. Deposit not yet credited → DEDUCT.
- Bank charges, standing instructions, dishonoured cheques → DEDUCT.
- Interest and direct collections credited by the bank → ADD.
- Starting from the bank statement instead? Every adjustment reverses.
- Favourable: cash book Dr = statement Cr. Overdraft: cash book Cr = statement Dr, and all adjustments reverse.
- Priya check: 48,700 + 5,000 − 1,500 − 200 = 52,000 ✔
The full picture
Every business that operates a bank account keeps two parallel records of the same money. You record every deposit and every cheque issued in your cash book. Your bank does the same in its own ledger and sends you a bank statement each month. In theory, both should show the same closing balance on the same date. In practice, they almost never match exactly — and the BRS is the document that explains the gap.
The mismatch is not usually an error. It arises because of timing differences: events that one party has recorded but the other has not yet processed. The three most common causes are (1) outstanding cheques — cheques you have issued and entered in your cash book, but which the payee has not yet presented to the bank; (2) deposits in transit — cash or cheques you have deposited and recorded in your cash book, but which the bank will only credit on the next working day; and (3) bank charges or interest — amounts the bank has already deducted from your account and shown on the statement, but which you have not yet entered in your cash book. A clean BRS names every such item and removes the mystery.
SCERT Kerala teaches BRS using the 'cash book balance to bank statement balance' format. You start with your cash book balance and apply adjustments one by one until you arrive at the bank statement balance. Outstanding cheques are added — because the bank has not yet paid them, its balance is still higher than your cash book by that amount. Deposits in transit are deducted — because the bank has not yet credited them, its balance is lower than yours. Bank charges are also deducted — because the bank has already reduced its balance by that amount but your cash book has not. When all adjustments are made and your adjusted cash book matches the bank statement, the reconciliation is complete.
Consider Meera, who runs a small coconut oil business in Thrissur. Her cash book on 31 March shows a balance of ₹75,000. Her South Indian Bank statement dated 31 March shows ₹82,500. She checks for differences: she issued a cheque of ₹12,000 to her packaging supplier on 29 March, but the supplier has not presented it yet (outstanding cheque); she deposited ₹4,000 cash on 31 March evening, which the bank will process on 1 April (deposit in transit); and the bank deducted ₹500 as annual maintenance charges, which she has not yet recorded in her cash book (bank charge). BRS starting from cash book: ₹75,000 + ₹12,000 (outstanding cheque) − ₹4,000 (deposit in transit) − ₹500 (bank charge) = ₹82,500. This matches the bank statement exactly. Every rupee of difference is explained.
Preparing a BRS monthly is a simple discipline with a big payoff. It catches double entries, forged cheques, bank errors, and unrecorded expenses before they snowball. In your board exam, always write the BRS in tabular form — list each adjusting item clearly, show the direction (add or deduct), and confirm the final figure matches the bank statement. One common exam error is adding deposits in transit instead of deducting them; remember, the bank has not yet credited them, so the bank balance is lower, meaning your cash book is currently overstating funds relative to the bank.
An Indian example
Arun runs a small electronics repair shop in Ernakulam. On 31 May his cash book shows ₹38,000, but his Federal Bank statement shows only ₹31,500 — a gap of ₹6,500. Worried, he sits down to reconcile. He finds three items: a ₹5,000 cheque he paid to his spare-parts supplier on 28 May has not been presented yet (outstanding cheque); he deposited ₹2,000 at 6 PM on 31 May after banking hours (deposit in transit); and the bank silently charged ₹500 as locker rental — he had completely forgotten this was due. BRS: ₹38,000 + ₹5,000 − ₹2,000 − ₹500 = ₹40,500? That overshoots. Arun re-checks and realises he had posted the supplier cheque twice in his cash book by mistake — one entry for ₹5,000 is a duplicate. After removing the duplicate entry, his corrected cash book balance becomes ₹33,000. Now: ₹33,000 + ₹5,000 − ₹2,000 − ₹500 = ₹35,500. Still not matching. He looks again and spots a second bank charge of ₹4,000 for a returned outward cheque he had forgotten about — this brings the cash book side down: ₹33,000 − ₹4,500 (total bank charges) + ₹5,000 − ₹2,000 = ₹31,500. The BRS now balances perfectly with the bank statement. What seemed like a frightening ₹6,500 gap turned out to be a mix of a duplicate entry and two forgotten bank charges — both caught only because Arun did his monthly reconciliation.
Common misconceptions to watch for
- Wrong belief: 'Outstanding cheques should be deducted from the bank statement because we've already paid them.' Correction: Outstanding cheques have already been recorded in your cash book when you issued them — you do not touch the cash book side for them. In the standard SCERT Kerala BRS format — starting from cash book balance to reach bank statement balance — outstanding cheques are ADDED to the cash book balance, because the bank has not yet paid them and its balance is still higher than your cash book by that amount. If you were instead starting from the bank statement balance to reach the cash book balance, you would DEDUCT outstanding cheques from the bank statement. Either way, the cash book balance itself is never further adjusted for outstanding cheques.
- Wrong belief: 'If the bank statement and cash book don't agree, someone has made a mistake and must correct it.' Correction: Timing differences — outstanding cheques and deposits in transit — are completely normal and require no correction in either record. They resolve on their own as the bank processes the transactions. Only genuine errors (wrong amounts, duplicate entries, unrecorded bank charges) need a correcting entry.
- Wrong belief: 'Bank charges appear in both the bank statement and the cash book automatically.' Correction: The bank deducts its charges directly from your account and shows them on the statement, but your cash book has no way of knowing this until you check the statement. You must manually enter the bank charge in your cash book after seeing it on the statement. Until you do, the cash book overstates your balance by that amount.
Video
Fix Bank Reconciliation in 5 Steps With AI Prompts
Questions
Priya's stationery shop in Thiruvananthapuram shows a cash book balance of ₹48,700 on June 30. The HDFC Bank statement shows ₹52,000. She wrote a ₹5,000 cheque on June 28 not yet presented to the bank, deposited ₹1,500 cash on June 30 evening (to be processed July 1), and the bank charged ₹200 service fees not yet recorded in her cash book. Prepare a bank reconciliation statement.
- 1Start with the bank statement balanceWe begin with the bank statement balance of ₹52,000. This is the external record we will adjust step by step to arrive at the true available balance for comparison with the cash book.
Question 1 of 5 · easy
Starting from the bank statement balance: a company's cash book shows ₹100,000 and the bank statement shows ₹120,000. Outstanding cheques total ₹20,000. Which side of the reconciliation do you adjust and in which direction?
Quiz
Test yourself — pick an answer, then hit "Check" to see the explanation and your running score.
Question 1 of 5 · easy
Starting from the bank statement balance: a company's cash book shows ₹100,000 and the bank statement shows ₹120,000. Outstanding cheques total ₹20,000. Which side of the reconciliation do you adjust and in which direction?
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