Ordinarily, all deposits-in-transit listed on the year-end bank reconciliation should appear as deposits on the cutoff bank statement.

Question

Quizplus · Accepted Answer

Deposits-in-transit are deposits made by the company that have not yet been recorded by the bank because they were made after the bank statement cutoff date. Therefore, they should appear on the next bank statement as deposits. As such, they should be listed as outstanding deposits on the company's year-end bank reconciliation. When the next bank statement is received, these deposits-in-transit will no longer be outstanding as they will have been recorded by the bank.

Ordinarily, All Deposits-In-Transit Listed on the Year-End Bank Reconciliation Should