Reversal Error Offset by Unpresented Cheques

Steps:

• Felix's $200 bank withdrawal should credit the bank column (decrease balance by$200).
• Reversing entries debits bank instead (increases balance by $200), creating a +$400 error (too high by $400 in cash book).
• Bank statement correctly shows -$200 (true balance lower by$200).
• Unpresented cheques of $400 mean cash book deducted$400 more than statement (cash book lower by $400 relative to statement).
• Net effect: +$400 error and -$400 from unpresented cheques cancel out, matching balances.

Why D is correct:

• Unpresented cheques are payments recorded in cash book (bank credited, balance decreased) but not yet debited by bank, per bank reconciliation principles, offsetting the +$400 reversal error exactly.

Why the others are wrong:

• A: Uncredited deposit of $200 increases cash book excess (makes discrepancy +$600 total).
• B: Unpresented cheque of $200 offsets only half the error (discrepancy remains +$200).
• C: Same as B; offsets only half the error (discrepancy remains +$200).

Final answer: D