A deposit in transit on last period's bank reconciliation is shown as a deposit on the bank statement this period.As a result,in preparing this period's reconciliation,the amount of this deposit should be:
A)Added to the book balance of cash.
B)Deducted from the book balance of cash.
C)Added to the bank balance of cash.
D)Deducted from the bank balance of cash.
E)Not included as a reconciling item.

Question

Quizplus · Accepted Answer

A deposit in transit from the previous period that appears on the current bank statement has already been accounted for in the books, so it should not be included as a reconciling item in the current period.

A Deposit in Transit on Last Period's Bank Reconciliation Is