The false statement is when Bank Reconciliation Statement is initiated with a favorable balance (debit) as per the cash book, the wrong credit in the cash book is deducted. The debit balance as per the cash book means the balance of deposits held at the bank. Such a balance will be a credit balance as per the passbookSuch a balance exists when the deposits made by the firm are more than its withdrawalsIt indicates the favorable balance as per the cash book or favorable balance as per the passbook. On the other hand, the credit balance as per the cash book indicates bank overdraft. Hence, the wrong debit in the cashbook is to be deducted instead of the wrong credit. Therefore the statement 'When Bank Reconciliation Statement is initiated with a favorable balance (debit) as per the cash book, the wrong credit in the cash book is deducted' is false.