Bank Reconciliation Adjustment Steps:

• Begin with bank statement balance of 22,650 credit.
• Deduct unpresented cheques of 310, as they reduce the true cash available.
• Deduct bank error of 650, where interest was credited twice, overstating the balance.
• Adjusted balance is 22,650 - 310 - 650 = 21,690 credit.

Why A is correct:

• A (21,690) reflects the reconciled bank balance per accounting standards, adjusting the statement for timing differences and errors to show true financial position.

Why the others are wrong:

• B: Ignores the bank error, failing to deduct the duplicated interest credit.
• C: Omits unpresented cheques, overstating cash by not accounting for uncleared payments.
• D: Adds rather than subtracts adjustments, violating reconciliation principles.

Final answer: A