Bank reconciliation for cash book balance Steps:

• Identify the base difference from unpresented cheques exceeding bank balance: $312 -$280 = $32.
• Adjust for standing order error: bank over-deducted by $2 ($22 - $20), reducing the difference by$2: $32 -$2 = $30.
• The excess unpresented cheques over bank balance indicates cash book is in credit by this net amount.

Why A is correct:

• Per bank reconciliation rules, unpresented cheques reduce cash book relative to bank; when they exceed bank balance, adjusted net yields credit balance of $30.

Why the others are wrong:

• B: Treats net as debit, ignoring excess unpresented cheques creating credit position.
• C: Adds error $2 instead of subtracting, yielding$34 debit.
• D: Adds error $2, yielding$34 credit.

Final answer: A