The Cash account in the ledger of Clear Windows shows a balance of $12,596 at September 30. The bank statement, however, shows a balance of $16,253 at the same date. The only reconciling items consist of a bank service charge of $16, a large number of outstanding checks totaling $6,740, and a deposit in transit.
-Refer to the above data. What is the amount of the deposit in transit?

Question

Quizplus · Accepted Answer

The amount of the deposit in transit is the difference between the balance per books ($67,535) and the balance per bank statement ($64,468) minus the outstanding checks ($2,938). Therefore, deposit in transit = ($67,535 - $64,468 - $2,938) = $3,067.

The Cash Account in the Ledger of Clear Windows Shows