Concept:Bank charges are entries made by the bank that affect the business, but they are not yet entered in the firm's cash book.
Explanation:Bank charges are first shown on the bank statement.
These charges reduce the amount of money the business has in the bank.
The cash book must be updated to show this reduction.
This makes the cash book balance match the bank statement.
After updating the cash book, the revised balance is used to prepare the bank reconciliation statement.
Hence, the adjustment is recorded in the cash book.
Answer:B. cash book