Accounting · Bank Reconciliation Statement

Which of the following statements regarding the procedure and principles of Bank Reconciliation Statements is/are correct? Statement I: The adjusted cash book method requires the entity to first record all omissions and errors made by the entity itself in the ledger before preparing the final reconciliation statement for timing differences. Statement II: A credit balance as per the bank passbook is considered an asset for the account holder, whereas a debit balance as per the cash book signifies a liability known as a bank overdraft. Statement III: Timing differences, such as checks issued but not presented for payment, are the only reasons why a bank reconciliation statement might be required in a perfectly managed accounting system.