Explain the process of preparing bank reconciliation statement with amended cash balance.

Bank Reconciliation Statement can be prepared with the adjusted/amended bank column of the Cash Book by the below given steps.

Step 1: Note down the bank balance as per the Cash Book.

Step 2: Rectify all the errors committed in the Cash Book.

Step 3: Enter those transactions in the debit column of the Cash Book that are only in the credit column of the Pass Book.

Step 4: Enter those transactions in the credit column of the Cash Book that are only in the debit column of the Pass Book.

Step 5: After completing the above steps, the balance or the overdraft, as per amended Cash Book, arrives, with which Bank Reconciliation Statement can be prepared.

The performa of Bank Reconciliation Statement through amended balance is given below.