When BRS starts from cash book balance, cheques issued but not yet presented are:

1. When a cheque is issued, the cash book is credited and bank balance reduces immediately. 2. The bank pass book debits the entity only when the cheque is presented for payment. 3. Hence the pass book still shows the higher balance, so the cheque amount is added to the cash book balance to arrive at the pass book figure. _Source: ICAI BoS Foundation Paper 1, Ch 3 "Bank Reconciliation Statement", §6.1 example_