What is a deposit in transit? How are deposits in transit reflected on the bank reconciliation?

Question

Quizplus · Accepted Answer

The Answer is Companies frequently leave deposits in the bank's night depository or make them on the day following the receipt of cash. Such deposits are called deposits in transit. Because these deposits have been recorded on the books of the company, but not yet added to the depositor's account by the bank, they must be added to the unadjusted bank balance.

What Is a Deposit in Transit? How Are Deposits in Transit