AccountancyCBSE Class 11 · Bank Reconciliation Statement

BRS with a Bank Overdraft and the Amended Cash Book Method Class 11

Updated 17 October 2026 · Fact-checked

When the cash book shows a bank overdraft (a credit balance), the signs in the BRS reverse because an overdraft is a negative balance: an item that increases a favourable balance reduces an overdraft and vice versa. In the amended cash book method, the cash book is first corrected for items recorded first by the bank and for errors; the BRS is then prepared with the timing differences only.

An overdraft is a negative balance, so items that grow it are added and items that shrink it are deducted; fix bank-first items before the BRS.

Illustration drawn for QuestionBuddy.

Understand BRS with a Bank Overdraft and the Amended Cash Book Method

Think of an overdraft as a negative balance. Overdraft per cash book ₹15,000 means the balance is −15,000. Any item that would add to a favourable balance reduces the overdraft, and any item that would deduct from it increases the overdraft.

Signs in an overdraft BRS (starting from the overdraft per cash book).

Item	Effect on overdraft per pass book
Cheques issued, not presented	Deduct (overdraft per pass book is smaller)
Cheques deposited, not collected	Add (overdraft per pass book is larger)
Interest or charges debited by bank	Add
Credited by bank (direct collection, interest)	Deduct

Amended (adjusted) cash book method.
1. Take the opening balance of the bank column of the cash book.
2. Post the items recorded first by the bank (interest, charges, direct receipts and payments, dishonoured cheques) and correct any errors in the cash book. This gives the *adjusted cash book balance*.
3. Prepare the BRS from the adjusted balance, which now contains only the timing items: cheques issued not presented and cheques deposited not collected.

Direct entries. Items first recorded by the bank need entries in the cash book; timing items need none.

Check. Both ways of working should give the same pass book balance. In exam answers, always write whether the balance is as per the cash book (overdraft) or pass book (overdraft), because the question usually gives a mix of the two.

BRS with a Bank Overdraft and the Amended Cash Book Method: key facts

Overdraft signs: Cheques issued not presented deduct from overdraft
Cheques deposited not collected add
Bank charges and interest add
Credits by bank deduct; Starting from overdraft per cash book.
Amended cash book: Step 1: adjust the cash book for bank-first items and errors | Step 2: BRS with timing items only; Cleaner method.
Think negative: Overdraft = negative balance | Adding a debit reduces the overdraft; Direction check.

Cheques issued not presented	deduct from overdraft
Cheques deposited not collected	add
Bank charges and interest	add
Credits by bank	deduct

How to answer BRS with a Bank Overdraft and the Amended Cash Book Method questions

Use the negative-balance picture and check the answer by working forward.

1Write the starting balance with a minus sign if it is an overdraft.
2Apply each item with the same signs as for a favourable balance.
3Interpret the final figure: a negative total is an overdraft.
4For the amended cash book method, pass the corrections first and then reconcile the timing items.
5Work back to check.

BRS with a Bank Overdraft and the Amended Cash Book Method in real life

The idea, met in an everyday situation. Answer the question in your own words, then compare with the model answer. The one-line hook is what to remember.

Overdraft interest

Suppose a firm's cash book shows an overdraft of ₹15,000, and the bank has debited ₹1,100 as interest for the month, which the firm has not yet recorded.

How does this change the overdraft per pass book?

Try it first, then show the solutionSolution

Interest debited by the bank makes the overdraft larger.
15,000 + 1,100 = ₹16,100 per pass book from this item.

Answer: Overdraft per pass book is higher by ₹1,100.

Memory hook: Bank debits increase the overdraft.

Tricks to remember BRS with a Bank Overdraft and the Amended Cash Book Method

Short memory aids. Say each one aloud once, then use it on a question the same day.

Overdraft: flip the thinking, not the table
Treat the overdraft as −15,000 and use the usual add/deduct rules; at the end, a negative result is the overdraft.
Use it when: Overdraft BRS.
Amend first, reconcile after
Adjusted cash book balance first, only timing items in the BRS.
Use it when: Amended method.

BRS with a Bank Overdraft and the Amended Cash Book Method: solved examples

Ordered from board level to HOTS. Try each one before you open the solution.

Example 1: Effect on an overdraft · 1 mark · MCQBoard level

The overdraft as per cash book is ₹15,000. A cheque of ₹7,000 issued by the firm has not yet been presented. The overdraft as per pass book from this item alone is:
(a) ₹22,000
(b) ₹8,000
(c) ₹15,000
(d) ₹7,000

Try it first, then show the solutionSolution

The bank has not yet paid the cheque, so its overdraft is smaller.

Answer: (b) ₹8,000

Example 2: Direction of each item · 3 marks · Short answerBoard level

The overdraft per cash book needs to be reconciled. State whether each item increases or decreases the overdraft per pass book: (i) cheques deposited but not collected; (ii) bank collected a debtor's payment directly; (iii) bank debited interest on overdraft. (3 marks)

Try it first, then show the solutionSolution

(i) Increases: the bank has not credited the amount.
(ii) Decreases: the bank has credited the amount.
(iii) Increases: the bank has debited interest.

Answer: (i) increase (ii) decrease (iii) increase

Example 3: BRS from an overdraft · 5 marks · Long answerHarder board level

The cash book shows an overdraft of ₹15,000. Cheques issued but not presented ₹7,000; cheques deposited but not collected ₹10,000; bank charges ₹400 and overdraft interest ₹1,100 debited by the bank; bank collected ₹3,000 for the firm directly. Prepare the BRS to find the overdraft per pass book. (5 marks)

Try it first, then show the solutionSolution

Overdraft per cash book 15,000.
Deduct: cheques issued not presented 7,000; direct collection 3,000.
Add: cheques deposited not collected 10,000; bank charges 400; interest 1,100.
Overdraft per pass book = 15,000 − 7,000 − 3,000 + 10,000 + 400 + 1,100 = ₹16,500.

Answer: Overdraft as per pass book ₹16,500.

Example 4: Amended cash book then BRS · 6 marks · Long answerHarder board level

The cash book balance (bank column) is ₹12,300 debit. The pass book shows interest ₹1,500 credited, bank charges ₹250, insurance ₹2,000 paid under standing instruction, and a debtor's cheque of ₹1,800 dishonoured. A cheque issued for ₹2,700 was entered as ₹2,070 in the cash book. Cheques issued but not presented ₹5,000; cheques deposited but not collected ₹3,200. Prepare the adjusted cash book balance and the BRS. (6 marks)

Try it first, then show the solutionSolution

Error: payment recorded ₹630 too low, so the cash book balance is overstated: deduct 630 (2,700 − 2,070).
Adjusted balance = 12,300 + 1,500 − 250 − 2,000 − 1,800 − 630 = ₹9,120.
BRS from 9,120: add cheques issued not presented 5,000; deduct cheques deposited not collected 3,200.
Balance per pass book = 9,120 + 5,000 − 3,200 = ₹10,920.

Answer: Adjusted cash book ₹9,120; pass book balance ₹10,920.

Example 5: Working from the pass book overdraft · 5 marks · Short answerHOTS / competency

The pass book shows an overdraft of ₹9,500. Cheques deposited ₹6,000 not yet collected; cheques issued ₹2,500 not yet presented; overdraft interest ₹800 debited by the bank not in the cash book; ₹1,200 collected directly by the bank. Find the overdraft per cash book. (5 marks)

Try it first, then show the solutionSolution

Start from the pass book overdraft 9,500.
Cheques deposited not collected: the pass book overdraft is bigger than the cash book's, so deduct 6,000.
Cheques issued not presented: the cash book overdraft is bigger, add 2,500.
Interest charged by the bank: pass book bigger, deduct 800. Direct collection credited by the bank: pass book smaller, add 1,200.
Overdraft per cash book = 9,500 − 6,000 + 2,500 − 800 + 1,200 = ₹6,400.
Check: 6,400 − 2,500 + 6,000 + 800 − 1,200 = 9,500.

Answer: Overdraft as per cash book ₹6,400.

Where students lose marks in BRS with a Bank Overdraft and the Amended Cash Book Method

The slips examiners see most often, and what to write instead.

Mistake: Using favourable signs for an overdraft without thinking
Adding cheques issued to the overdraft.
Wrong working
15,000 + 7,000 = 22,000.
Right working
15,000 − 7,000 = 8,000.
Do this: The bank has not paid, so the overdraft is smaller.
Usually costs: 1 mark
Mistake: Treating an overdraft as a favourable balance in the final figure
Not stating overdraft.
Wrong working
Balance per pass book ₹16,500.
Right working
Overdraft per pass book ₹16,500.
Do this: Name the nature of the balance.
Usually costs: 1/2 mark
Mistake: Not correcting the cash book first in the amended method
Putting bank-first items in the BRS.
Wrong working
Interest in the BRS statement.
Right working
Pass entries for interest and charges before the BRS.
Do this: Amend, then reconcile.
Usually costs: 1 mark

Exam tips

Write the starting balance with a minus sign if it is an overdraft.
In the amended cash book method, show the adjusted balance as a separate figure.
Label the final answer "overdraft as per pass book" or "balance as per pass book".
Check by working backwards.

Practice questions on BRS with a Bank Overdraft and the Amended Cash Book Method

Write each answer on paper first. Open the hint only if you are stuck, and the answer only when you have finished.

Q1 · 1 mark · MCQBoard level
Interest on overdraft has been debited by the bank but is not yet in the cash book. The overdraft per pass book, from this item alone, is:
(a) smaller than per cash book
(b) larger than per cash book
(c) the same
(d) cannot be said
Hint
The bank has charged more.
Answer
(b) larger than per cash book
Q2 · 3 marks · Short answerHarder board level
The overdraft per cash book is ₹20,000. Cheques issued ₹6,500 not presented; cheques deposited ₹9,000 not collected; bank charges ₹300. Find the overdraft per pass book. (3 marks)
Hint
Think negative.
Answer
Overdraft per pass book = 20,000 − 6,500 + 9,000 + 300 = ₹22,800.
Q3 · 4 marks · Short answerHarder board level
The cash book bank column shows ₹30,000 debit. Amended cash book items: interest on deposit credited ₹600, bank charges ₹150, a cheque of ₹4,000 returned dishonoured. Cheques issued not presented ₹3,500; deposited not collected ₹5,500. Find the adjusted cash book balance and the pass book balance. (4 marks)
Hint
Dishonoured cheques reduce the balance.
Answer
Adjusted = 30,000 + 600 − 150 − 4,000 = ₹26,450. Pass book = 26,450 + 3,500 − 5,500 = ₹24,450.
Q4 · 1 mark · Assertion-reasonHarder board level
Assertion (A): In the amended cash book method the BRS contains only cheques issued but not presented and cheques deposited but not collected.
Reason (R): All items first recorded by the bank are entered in the cash book before the BRS is prepared.
(a) Both A and R are true, and R is the correct explanation of A.
(b) Both A and R are true, but R is not the correct explanation of A.
(c) A is true, but R is false.
(d) A is false, but R is true.
Hint
Amended method.
Answer
(a) Both A and R are true, and R is the correct explanation of A.
Q5 · 5 marks · Short answerHOTS / competency
Pass book shows a favourable balance of ₹18,000; the cash book shows an overdraft of ₹6,000 on the same date. List the combined effect of timing items and bank-first items that could reconcile this large gap, and show one set of numbers (cheques issued not presented ₹12,000, cheques deposited not collected ₹nil, and one bank-first item) that fits. (5 marks)
Hint
Gap = 24,000.
Answer
The pass book is 24,000 better than the cash book (+18,000 versus −6,000). Cheques issued not presented ₹12,000 give half. The bank-first item must credit the account by another ₹12,000, for example a direct collection or deposit ₹12,000 not yet in the cash book. Check: −6,000 + 12,000 + 12,000 = +18,000.

Test your recall

Answer in your head or on paper first, then open the card. Pulling an answer out of memory makes it stick far better than re-reading.

1.How should an overdraft be treated in thinking?Show answer
As a negative balance.
2.Cheques issued not presented effect on overdraft?Show answer
Decrease.
3.Bank interest on overdraft effect?Show answer
Increase.
4.What is done first in the amended cash book method?Show answer
Cash book is corrected for bank-first items and errors.
5.What remains in the BRS afterwards?Show answer
Only timing items.

BRS with a Bank Overdraft and the Amended Cash Book Method: frequently asked questions

Is overdraft per cash book a credit balance?

Yes; the bank column shows a credit balance.

Why amend the cash book?

Because the firm must record the items the bank has already recorded.

Can the cash book have overdraft while the pass book is favourable?

Yes, if cheques issued are not yet presented or collections are credited by the bank.