Answer:
D) Deducted from the bank balance of cash.
Explanation:
When you are preparing a bank reconciliation you generally must add to your balance account deposits in transit and deduct outstanding checks.
Checks are considered cash payments, but sometimes the payee of the check decides to cash the check later due to whatever reason or simply because he wants to. But once the check is handed out, the drawer has to consider it as money paid, no matter when it is cashed.
