Bills receivable discounted with the bank gets dishonoured. The first action in BRS starting from cash book balance is to:

1. The bank had earlier credited the entity when the bill was discounted. 2. On dishonour, the bank debits the customer's account in the pass book. 3. The cash book has not yet recorded the dishonour, so its balance is higher. 4. Subtract the bill amount from the cash book balance to reach pass book balance. _Source: ICAI BoS Foundation Paper 1, Ch 3 "Bank Reconciliation Statement", §6.1 (viii)_