Which of the following balances are used to prepare a bank reconciliation statement?

Both passbook and cash book balance

The correct answer is option 3- Both passbook and cash book balance.

A bank reconciliation statement is a statement prepared periodically (often monthly) by a business or individual to reconcile the discrepancies between the balance shown in their bank statement (passbook) and the balance shown in their own accounting records (cash book). Thus, both passbook and cash book balance are used to prepare a bank reconciliation statement.