Bank Reconciliation Statement :

The balance of the bank column in the double or triple column cash book represents the customers cash balance at bank. It should be
the same as shown by his bank pass book on any particular day. For every entry made in the cash book if there is a corresponding entry in the pass book(maintained by the banker) or vice versa, the bank balance will be the same in both the books.

However, it must be noted that the cash book and the pass book are maintained by two different parties and hence it is not certain that entry in one book will always have a corresponding entry in the other. Normally entries in the cash book should tally (agree) with those in the pass book and the balances shown by both the books should be the same. But in practice, the balances generally differ. In case of disagreement in the balance of the cash book and the pass book, the need for preparing Bank Reconciliation Statement arises.