Final answer:
The formula for calculating the adjusted cash balance in bank reconciliation is: Cash balance per bank + deposits in transit - outstanding checks +/- errors
Step-by-step explanation:
The correct formula for calculating the adjusted cash balance in bank reconciliation is:
Cash balance per bank + deposits in transit - outstanding checks +/- errors
This formula takes into account the starting cash balance according to the bank records, adds any deposits that are still in transit (recorded by the bank but not yet received by the company), subtracts any outstanding checks (recorded by the company but not yet cleared by the bank), and adjusts for any errors that may have occurred during the reconciliation process.