In preparing a bank reconciliation, the amount of checks outstanding would be: A. added to the cash balance according to the bank statement. B. deducted from the cash balance according to the bank statement. C. added to the cash balance according to the company’s records. D. deducted from the cash balance according to the company’s records.

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Bank Reconciliation Statement

As a commerce student, we all know that every business has to maintain a cash book to maintain all his cash and bank transactions. A cash book is a book which has two columns, one cash column and one bank column.