Bank reconciliation for statement of financial position

Steps:

• Start with cash book balance of $2,970.
• Subtract dishonoured customer's cheque $176, as this overstates the cash book (bank has reversed it).
• The bank error $560 (incorrect debit) overstates the difference, but its exact impact on reconciliation is ambiguous without specifying if it affects cash book or bank statement directly.
• Not enough information to compute a precise figure matching the options.

Why B is correct:

• Not enough information.

Why the others are wrong:

• A. $2,162: Does not align with any standard reconciliation adjustment.
• C. $2,571: Likely from adding the error instead of subtracting.
• D. $2,591: Results from partial or reversed adjustments.

Final answer: B