If a check correctly written and paid by the bank for $649 is incorrectly recorded on the company's books for $694, the appropriate treatment on the bank reconciliation would be to

Add $45 to the book balance

Explanation:

This is a case of bank reconciliation. Bank reconciliation occurs when the account of the bank and the company or Business are compared in order to check the differences which are then reconciled.

In this case, since the check written and paid by the bank is $649 while in the company's book, it's written as $694, then a book balance of $45 is added which is the difference between $694 and $649

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