Concept:Bank reconciliation identifies differences between the cash book balance and the bank statement balance caused by timing of transactions.
Explanation:When a business issues cheques to suppliers, it records the payment immediately and reduces its cash book balance.
The bank statement does not show this deduction until the cheques are actually presented by the payee and paid by the bank.
During this time, the bank statement balance stays higher than the balance shown in the cash book.
This type of timing difference is known as unpresented cheques.
As a result, the cash book balance is less than the bank statement balance until those cheques are cleared.
Answer:D. unpresented cheques