AccountsISC Class 11 · Bank Reconciliation Statement

BRS with Overdraft, Extracts and Amended Cash Book: ISC Class 11 Accounts

Updated 17 October 2026 · Fact-checked

When the bank balance is an overdraft, the signs of the BRS reverse: items that raise the favourable balance are deducted and items that lower it are added. For extracts of the two books, tick the matching entries and prepare the BRS from the unmatched ones. In an amended cash book, first correct the cash book for items known only to the bank, then prepare the BRS for the timing differences.

Compare each row: every plus under favourable balance becomes a minus under overdraft, and every minus becomes a plus.

Illustration drawn for QuestionBuddy.

Understand BRS with Overdraft, Extracts and the Amended Cash Book

Overdraft. A bank overdraft is a credit balance in the cash book (the business owes the bank) and a debit balance in the pass book. For an overdraft as per cash book: the rules for items reverse.

Cheques issued but not presented: *deduct*. Cheques deposited but not yet credited: *add*.
Bank charges, interest on overdraft, direct payments: *add*. Direct deposits, interest credited: *deduct*.

Why? An overdraft balance is a negative bank balance. A cheque issued but not presented makes the cash book overdraft larger than the bank's, so the pass book overdraft is smaller; deduct it.

Extracts of two books. The cash book bank column and the pass book are given. Compare each item: tick those that appear in both. Unmatched items in the cash book are timing differences (cheques not presented or not collected); unmatched items in the pass book are bank-only items. Opening balances may themselves differ because of previous-period items.

Errors. An error in the cash book (wrong total, omitted entry, entry on the wrong side) must be corrected before the BRS, in the cash book. An error by the bank is corrected by informing the bank and appears in the BRS.

Amended (adjusted) cash book. Prepared first, with the bank-only items:

Dr side: interest/dividend credited, direct deposits, cheques wrongly entered.
Cr side: bank charges, direct payments, dishonoured cheques.

It gives the *adjusted balance*. The BRS then starts from the adjusted balance and only timing differences remain: cheques issued and not presented, cheques deposited and not collected.

Check. Adjusted cash book balance + issued not presented - deposited not collected = pass book balance (favourable).

BRS with Overdraft, Extracts and the Amended Cash Book: key facts

Overdraft per cash book: Pass book overdraft = Cash book overdraft - Issued not presented + Deposited not credited + Bank charges - Direct deposits | Signs reversed; Credit balances.
Adjusted cash book: Adjusted balance = Cash book balance + Bank credits not in cash book - Bank debits not in cash book | Before the BRS; Favourable balance.
Final check: Pass book balance = Adjusted cash book + Issued not presented - Deposited not credited | After amendments; Only timing items remain.

How to answer BRS with Overdraft, Extracts and the Amended Cash Book questions

Decide the balance type, correct the cash book, then bridge to the pass book.

1Identify whether the starting balance is favourable (Dr) or an overdraft (Cr).
2Tick matching items in the extracts.
3Pass entries in the amended cash book for bank-only items.
4Prepare the BRS with only timing differences and verify the pass book figure.

BRS with Overdraft, Extracts and the Amended Cash Book 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 sign flip

Suppose a trader has a cash book overdraft of Rs 10,000 and has issued a cheque of Rs 2,000 that the bank has not yet paid.

What is the overdraft in the pass book?

Try it first, then show the solutionSolution

The cash book already counts the Rs 2,000 as paid, so it shows a bigger overdraft.
The bank has not paid it, so its overdraft is smaller: 10,000 - 2,000.

Answer: Pass book overdraft Rs 8,000.

Memory hook: Overdraft: issued not presented comes off.

Tricks to remember BRS with Overdraft, Extracts and the Amended Cash Book

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

Flip for overdraft
Every add becomes subtract and every subtract becomes add.
Use it when: Overdraft.
Amend first
Fix the books before bridging them.
Use it when: Amended cash book.
Tick and tie
Tick matched items; the rest explain the gap.
Use it when: Extracts.

BRS with Overdraft, Extracts and the Amended Cash Book: solved examples

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

Example 1: Overdraft sign · 1 mark · MCQBoard level

For a cash book overdraft, a cheque issued but not yet presented is:
(a) added (b) deducted (c) ignored (d) shown as a liability

Try it first, then show the solutionSolution

With an overdraft, signs reverse: the item is deducted.

Answer: (b) deducted

Example 2: Overdraft BRS · 6 marks · Long answerHarder board level

Overdraft as per cash book on 31 Dec Rs 18,000. Cheques issued Rs 6,000 not presented; cheques deposited Rs 4,000 not credited; bank charges Rs 200 and interest on overdraft Rs 900 not entered in the cash book; a customer paid Rs 2,500 directly to the bank. Find the overdraft as per the pass book. (6 marks)

Try it first, then show the solutionSolution

Overdraft as per cash book = 18,000.
Deduct: issued not presented 6,000; direct deposit 2,500 = 8,500, giving 9,500.
Add: deposited not credited 4,000; charges 200; interest 900 = 5,100, giving 14,600.

Answer: Overdraft as per pass book Rs 14,600.

Example 3: Amended cash book · 7 marks · Long answerHarder board level

Cash book balance (Dr) Rs 25,000. Pass book items not in the cash book: direct deposit by a debtor Rs 3,000, dividend collected Rs 1,500, standing instruction paid for insurance Rs 2,200, bank charges Rs 150, a deposited cheque of Rs 1,000 dishonoured. Cheques issued not presented Rs 4,000; cheques deposited not collected Rs 6,000. Prepare the amended cash book and the BRS. (7 marks)

Try it first, then show the solutionSolution

Adjusted balance = 25,000 + 3,000 + 1,500 - 2,200 - 150 - 1,000 = Rs 26,150.
BRS: 26,150 + 4,000 - 6,000 = Rs 24,150 as per pass book.

Answer: Adjusted cash book balance Rs 26,150; pass book balance Rs 24,150.

Example 4: Extracts · 6 marks · Long answerHarder board level

Cash book bank column (Dr): balance b/d 14,000; deposits 8,000 on 5th, 5,000 on 12th, 6,000 on 28th. Cr: cheques 3,000 on 7th, 4,500 on 14th, 2,500 on 30th. Pass book (Cr): opening 14,000; deposits 8,000, 5,000; (Dr): cheques 3,000, 4,500; also credit 1,200 interest, debit 300 charges. Prepare the BRS on 31st. (6 marks)

Try it first, then show the solutionSolution

Cash book balance = 14,000 + 19,000 - 10,000 = 23,000.
Unmatched: 28th deposit 6,000 (not credited), 30th cheque 2,500 (not presented), interest 1,200, charges 300.
BRS: 23,000 + 2,500 + 1,200 - 6,000 - 300 = 20,400.
Pass book: 14,000 + 13,000 + 1,200 - 7,500 - 300 = 20,400.

Answer: Pass book balance Rs 20,400, agreeing with the computed pass book.

Example 5: Interpreting a large gap · 4 marks · Short answerHOTS / competency

A firm's adjusted cash book shows Rs 40,000 but the pass book shows Rs 32,000, while only a cheque of Rs 5,000 is known to be unpresented. What does this suggest, and what should the firm do? (4 marks)

Try it first, then show the solutionSolution

Expected pass book = 40,000 + 5,000 = 45,000, but actual is 32,000: an unexplained difference of 13,000.
It suggests a missing item or error (a transposition, an unrecorded bank debit, an omitted entry).
Check the books for the missing item and report it to the bank if the error is theirs.

Answer: Unexplained difference of Rs 13,000; investigate for errors or unrecorded items.

Where students lose marks in BRS with Overdraft, Extracts and the Amended Cash Book

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

Mistake: Using favourable-balance signs for an overdraft
Automatic habit.
Wrong working
18,000 + 6,000 for cheques issued
Right working
18,000 - 6,000
Do this: Flip all signs.
Usually costs: 2-3 marks.
Mistake: Putting bank charges in the BRS after amending
Counting twice.
Wrong working
BRS also deducts 150
Right working
Charges only in the amended cash book
Do this: After amendment, only timing items remain.
Usually costs: 2 marks.
Mistake: Skipping the opening balance check
Rushing.
Wrong working
Ignoring previous-period items
Right working
Compare opening balances
Do this: Check opening differences.
Usually costs: 1-2 marks.

Exam tips

Always label the starting balance as favourable or overdraft.
Show the amended cash book as a small T-account.
After the BRS, confirm the figure equals the other book.

Practice questions on BRS with Overdraft, Extracts and the Amended Cash Book

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
An amended cash book is prepared to:
(a) record bank-only items first (b) cancel cheques (c) calculate depreciation (d) ignore errors
Hint
Before the BRS.
Answer
(a) record bank-only items first
Q2 · 3 marks · Short answerBoard level
Why do the signs reverse when the cash book shows an overdraft? Support with an example of a cheque issued. (3 marks)
Hint
Credit balance.
Answer
An overdraft is a negative balance. A cheque issued but not presented has already been counted in the cash book but not by the bank, so the bank's overdraft is smaller; it is deducted from the cash book overdraft.
Q3 · 5 marks · Long answerHarder board level
Overdraft as per pass book Rs 30,000. Cheques issued Rs 9,000 not presented; cheques deposited Rs 12,000 not credited; bank charges Rs 500 and interest on overdraft Rs 1,500 not recorded in the cash book. Find the overdraft per the cash book. (5 marks)
Hint
Start from the pass book overdraft.
Answer
Pass book overdraft 30,000. Add cheques issued not presented 9,000 = 39,000. Less deposits not credited 12,000, charges 500, interest 1,500 = 25,000. Overdraft as per cash book Rs 25,000.
Q4 · 6 marks · Long answerHarder board level
Cash book (bank) balance Rs 42,000 (Dr). Cheques issued Rs 7,500 not presented; deposits Rs 3,500 not credited; interest credited Rs 600 and charges Rs 400 not in the cash book; a cheque issued for Rs 1,800 was entered as Rs 1,600 in the cash book. Find the adjusted cash book balance and the pass book balance. (6 marks)
Hint
The error overstates the cash book by 200.
Answer
Adjusted cash book = 42,000 + 600 - 400 - 200 = Rs 42,000. Pass book balance = 42,000 + 7,500 - 3,500 = Rs 46,000.
Q5 · 3 marks · Short answerHOTS / competency
The treasurer prepares a BRS and adjusts the cash book for cheques issued but not presented, "to make the books agree". Explain why this is wrong and what the correct adjustment is. (3 marks)
Hint
Timing differences.
Answer
Cheques issued are already correctly recorded; the bank will pay them later. Only bank-only items (charges, interest, direct credits) and errors require cash book entries.

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.Overdraft is credit or debit in cash book?Show answer
Credit.
2.Amended cash book first or BRS first?Show answer
Amended cash book.
3.After amendment, which items remain in BRS?Show answer
Timing differences only.
4.Overdraft, issued not presented?Show answer
Deduct.
5.Overdraft, bank charges?Show answer
Add.

BRS with Overdraft, Extracts and the Amended Cash Book: frequently asked questions

Can pass book show overdraft while cash book is Dr?

Yes, because of timing differences.

What if books never agree?

Search for errors.

Is the BRS sent to the bank?

No, it is internal.

How often is it made?

Monthly or at period end.