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

Explanation

Difference between money book and pass book will arise because of some transactions that square measure recorded in pass book not being gift within the money book. this could be corrected by recording those transactions within the money book. The balance therefore obtained is named as adjusted balance or amended balance. the subsequent steps describe this method.
1. Note bank balance as per money book.
2: create corrections for errors committed within the money book.
3: Transactions gift solely on passbook’s accounting system should be updated in method of accounting of cashbook
4. Transactions gift solely on the passbook’s method of accounting should be updated in accounting system of cashbook
5: Calculate new money book balance and use it to organize a Bank Reconciliation Statement.