In a bank reconciliation statement, which item is added to the bank statement balance?

In a bank reconciliation statement, deposits are added to the bank statement balance to arrive at the correct cash balance. This is because the bank statement reflects transactions processed by the bank, and if there are any deposits made by the account holder that haven't yet been recorded by the bank, they would not appear in the bank statement balance. By adding these deposits to the bank statement balance, you ensure that the balance reflects all transactions that should be included.

Unpresented cheques, on the other hand, are cheques issued by the account holder that have not yet been cashed or cleared by the bank, so they would be subtracted from the bank statement balance. Withdrawals would also reduce the bank statement balance because they represent money taken out of the account. Bank fees, which are charges imposed by the bank, similarly decrease the balance. Therefore, only deposits represent an addition to the bank statement balance in the reconciliation process.