A deposit in transit in a bank reconciliation should be:
A)Added to the depositor's book cash balance.
B)Subtracted to the depositor's book cash balance.
C)Added to the bank statement balance.
D)Subtracted from the bank statement balance.

Question

Quizplus · Accepted Answer

Deposits in transit are amounts that have been recorded by the company but not yet by the bank, so they should be added to the bank statement balance to reconcile the company's cash records with the bank's records.

A Deposit in Transit in a Bank Reconciliation Should Be