The correct answer is There are 3 types of differences between the cash and pass book, namely timing, transactions and errors. Bank reconciliation statement: A bank reconciliation statement is a report or statement prepared by a company to reconcile bank transactions recorded in its books of accounts with bank statements. The bank reconciliation statement ensures the accuracy of bank balances by helping in the verification of entries recorded in the books of accounts. BRS is the process of reconciling Bank column of the cash book and bank balance as per bank's passbook. So, option 1 is incorrect. Overcasting refers to increase in amount. Overcasting the debit side of cashbook means increasing the total of debit side of cash book. It is an error in totalling. So, option 3 is incorrect. Debit balance in the cash book is NOT same as overdraft as per the pass book because overdraft is a type of loan taken from the bank and debit balance of cashbook shows the favourable balance as per cashbook. So, option 4 is incorrect. Variation in Passbook and Cashbook arise due to several reasons like, difference in the dates of transaction and debit/credit made by the bank, Omission of any transaction to be recorded, etc. So, option 2 is correct. Confusion PointsDebit as per cash book is favourable that denotes deposit of amount, but debit as per Passbook is unfavourable that denotes withdrawal from bank account. Credit as per cash book is unfavourable that denotes amount withdrawn, but credit as per Passbook is favourable that denotes deposit of amount in bank account. Overdraft is a type of loan, so it will increase when the amount is withdrawn from and will decrease when the amount is deposited to the bank account.