The process of preparing Bank Reconciliation Statement with amended cash balance involves the following steps:

First, when a comparison is made between the bank balance as shown in the firm's cash book and the bank statement, the two balances often do not tally. Hence, we need to ascertain the causes of difference and reflect them in the Bank Reconciliation Statement.

Second, it may happen that some of the receipts or payments are missing from either of the books and errors, if any, need to be rectified. This creates the need to look at the entries/errors recorded in both statements and other information available to compute the correct cash balance before reconciling the statements.

Third, the amended or correct cash balance is determined by adjusting the cash book for items like bank charges, interest credited by bank, and other transactions recorded only in the passbook. This gives us the adjusted balance as per cash book.

Fourth, after ascertaining the amended cash balance, the Bank Reconciliation Statement is prepared starting with this corrected balance. Items such as cheques issued but not presented are added, and cheques deposited but not credited by the bank are deducted to arrive at the balance as per passbook.

Finally, this approach ensures that all missing receipts, payments, and errors are first accounted for in the cash book, making the reconciliation process more accurate and meaningful.