Concept:A bank reconciliation statement is a statement that compares the cash book balance with the bank statement balance to identify the reasons for any difference between them.
Explanation:The cash book records all cash and bank transactions made by the business itself.
The bank statement is the record of transactions maintained by the bank.
Both records may differ due to timing differences such as unpresented cheques, uncredited cheques, bank charges, and direct debits.
The purpose of preparing a bank reconciliation statement is to ensure that both records agree and to detect any errors or missing entries.
It does not compare bank statement with transfers, cash book with transfers, or bank statement with cash transfers.
Therefore, the correct relationship is between the cash book and the bank statement.
Answer:D. Cash book and bank statement