Bank Reconciliation from Statement to Cash Book Steps:

• Start with credit balance per bank statement as base.
• Subtract unpresented cheques: these are deducted in cash book but not yet in bank, so reduce bank balance to match.
• Add uncredited deposits: these are added in cash book but not yet in bank, so increase bank balance to match.
• Resulting adjusted balance equals updated cash book balance.

Why D is correct:

• Standard bank reconciliation procedure: when starting from bank statement, deduct outstanding (unpresented) cheques and add deposits in transit (uncredited deposits) to reach cash book balance.

Why the others are wrong:

• A: Adding both ignores that unpresented cheques lower the effective bank balance relative to cash book.
• B: Subtracting both fails to account for uncredited deposits increasing the bank balance to match cash book.
• C: Adding unpresented cheques and subtracting uncredited deposits reverses the adjustments, mismatching balances.

Final answer: D