Question

What is the meaning of interest on investment collected by bank

Answer 1

In this case, Pass Book balance is the starting balance of Bank Reconciliation Statement which means we have to match the balance of Pass Book according to the Cash Book balance.

So, when interest on investment is collected by bank it implies balance as per Pass Book > balance as per Cash Book

Since the cash book balance is lower, we will subtract (or show the amount in the minus column in BRS) it from the balance as per Pass Book.