There was difference in the bank column of cash book and pass book by Rs. 2,500. On scrutiny it was found that interest of Rs. 500 charged directly by the bank was not entered in the cash book. The same was adjusted in the cashbook before reconciliation statement. Now, in the bank reconciliation statement, this interest of Rs. 500 is to be

When bank interest charged by the bank has already been adjusted in the cash book before preparing the bank reconciliation statement, it should be ignored in the BRS. This is because the adjustment has already been made to bring the cash book balance to the correct level, and the BRS is prepared to explain the remaining differences. Options A and B would double-count the adjustment.