Bank reconciliation statement maker
Tell the tool which balance the question gives you, then add the items that explain the difference. You get the statement as a table, with every line explained and the working written out.
Step 1 · Which balance does the question give you?
Step 2 · Items that explain the difference
Add only the items the question mentions.
The pass book shows ₹22,300 of money in the bank.
| Particulars | Add ₹ | Less ₹ |
|---|---|---|
| Balance as per Cash Book | 20,000 | |
| Cheques issued but not yet presentedThe bank hasn’t paid this cheque yet, so the pass book still shows more money. | 5,000 | |
| Cheques deposited but not yet creditedYou recorded this cheque in your cash book, but the bank has not credited it yet, so the pass book shows less. | 3,000 | |
| Bank chargesThe bank deducted its charges from your account. Your cash book does not have them yet. | 200 | |
| Interest credited by bankThe bank added interest to your account. Your cash book doesn’t know about it yet. | 500 | |
| Total | 25,500 | 3,200 |
| Balance as per Pass Book (credit / favourable) | ₹22,300 | |
Working
- Start with the Cash Book debit balance (money in bank): ₹20,000.
- Cheques issued but not yet presented: ₹5,000 goes under Add.
- Cheques deposited but not yet credited: ₹3,000 goes under Less.
- Bank charges: ₹200 goes under Less.
- Interest credited by bank: ₹500 goes under Add.
- 20,000 + 5,500 − 3,200 = 22,300
- Balance as per Pass Book (credit / favourable): ₹22,300.
Common mistakes in the exam
- Ask first: which book is ahead? Compare the two balances before you add anything. The answer tells you which side each item goes on.
- Overdraft reverses the sides. When the starting figure is an overdraft, the overdraft grows with Plus and shrinks with Minus.
- Cheques issued and cheques deposited are opposites. Starting from a favourable cash book balance, issued but not presented is added and deposited but not credited is subtracted. Start from the pass book, or from an overdraft, and both flip.
- A dishonoured cheque not yet in the cash book makes the pass book balance smaller. From a favourable cash book balance it is subtracted; from an overdraft it is added, because the overdraft grows.
Why the two books never match on their own
The cash book is your own record of money. The pass book is the bank’s record of your account. The two are written at different times, so some items appear in one book before the other. A cheque you wrote reaches your cash book the day you write it, but reaches the bank only when the payee presents it. A bank charge reaches the pass book the day the bank deducts it, but you learn about it only from the statement.
How the statement is built
Start from the balance the question gives you. Then ask one question about each item: does it make the balance you are finding bigger or smaller? Bigger goes under Add (or Plus). Smaller goes under Less (or Minus).
- Favourable balance (money in the bank): Add items raise the balance, Less items lower it.
- Overdraft: the figure is the amount overdrawn. Plus items increase the overdraft, Minus items reduce it.
- Check the answer: for a favourable start, the balance is start + total of Add − total of Less. For an overdraft start, the overdraft is start + total Plus − total Minus.
A quick check
Look at the cheques. Cheques issued and not yet presented make the pass book bigger than the cash book. Cheques deposited and not yet credited make the pass book smaller. If your statement puts them the other way round, you have probably swapped the starting book.
Learn the chapter
Learning aid — check the method and the wording of your question with your textbook and teacher.
By the ACES team · Last checked 6 November 2026