Final answer:
The student's question is related to the errors that can occur during bank reconciliation involving the cash book. The correct answer is 'B. Bank charges omitted' which refers to fees charged by the bank not recorded in the company's cash book.
Step-by-step explanation:
The student's question pertains to the different reasons for discrepancies between the bank statement balance and the cash book balance when reconciling a company's bank transactions. There are four options provided:
- Cheque deposit in transit: Funds that have been deposited, but not yet cleared and recorded by the bank.
- Bank charges omitted: Fees that the bank may charge for their services, which have not been entered into the cash book.
- Cheques unpresented: Cheques issued by the company which have not been presented to the bank for payment.
- Outstanding cheques: Cheques that have been written but not yet cashed or cleared by the bank.
In the context of the question, the correct answer that represents an error in the cash book would be B. Bank charges omitted. This reflects a scenario where a company fails to record a bank fee, resulting in a discrepancy between the company's records and the bank statement.