If the overdraft as per the passbook is taken as the starting point, the cheques issued but not presented are to be ...in the bank reconciliation statement.
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Explanation
When the overdraft as per passbook is taken as the starting point in preparing a Bank Reconciliation Statement, cheques issued but not presented for payment are to be added. This is because these cheques have already been recorded as payments in the cash book (increasing the overdraft), but have not yet been debited by the bank in the passbook. Therefore, to arrive at the correct overdraft balance as per cash book, the amount of such cheques must be added to the passbook overdraft balance.
Solution Steps
Step 1: Identify starting point - Overdraft as per Passbook
Step 2: Understand that cheques issued but not presented are already recorded in Cash Book but not in Passbook
Step 3: Since these cheques reduce the Cash Book balance (increase overdraft) but not the Passbook balance yet, they must be added to reconcile the difference