Bank reconciliation identifies the cash book balance as the one not matching the bank statement Steps:

• Note the cash book debit balance of $20690 at 30 April, which includes the$1470 receipt and $1740 payment.
• Bank charges of $450 are unrecorded in the cash book, requiring adjustment to$20690 - $450 =$20240 for reconciliation.
• The $1470 receipt and$1740 payment are uncleared, creating a net reconciling difference of $1740 -$1470 = $270.
• The question asks for the unadjusted cash book balance shown, not the bank statement balance.

Why B is correct:

• The cash book debit balance of $20690 represents the trader's recorded bank position before bank statement reconciliation, per standard accounting practice where cash book precedes bank clearance.

Why the others are wrong:

• A. Credit balance implies overdraft, contradicting the given debit balance.
• C. $4770 debit ignores the actual cash book figure and reconciling items.
• D. $20690 credit reverses the balance type from debit to credit.

Final answer: B