Adjusted Cash Book Balance is the corrected bank balance after adjusting for items appearing in bank statement but not yet recorded in company's cash book. These adjustments modify the cash book balance to reflect what the bank statement shows. Common adjustments include: add bank interest or direct deposits not recorded, deduct bank charges/commissions/loan repayments, record direct debits for insurance/utilities, adjust for cheques collected and amounts realized. Each item has supporting documentation (bank's advice/notification). The adjusted cash book becomes the basis for financial statement preparation. This differs from reconciling items that adjust bank statement to match cash book. When preparing final accounts, the adjusted cash book balance is the amount shown on the balance sheet under bank/cash account. Adjusting entries must be journalized to update records. The cash book balance in GL must match adjusted cash book balance after all corrections. This ensures cash figures in financial statements are accurate and complete. Understanding the distinction between adjusting items and reconciling items is crucial for proper accounting treatment. Exam tip: Items adjusting cash book typically require journal entries, while items reconciling bank statement usually don't (they're timing differences).