In a Cash Book Debit balance of `112 brought forward as credit balance of ` 121, while preparing a Bank Reconciliation Statement taking the balance as per Cash Book as the starting point:

Question

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The error made was reversing the nature of the balance while bringing it forward, which means the actual difference to reconcile the balance as per Cash Book would be the sum of both incorrect credit balance and the correct debit balance, i.e., 112 + 121 = 233.

In a Cash Book Debit Balance of `112 Brought Forward