How would deposits in transit be dealt with in a bank reconciliation?
A) added to bank statement balance
B) deducted from company's book balance
C) they would be ignored
D) None of these choices

Question

Quizplus · Accepted Answer

Deposits in transit are deposits that have been made by the company but are not yet recorded on the bank statement. Therefore, they need to be added to the bank statement balance to ensure that it matches the company's book balance.

How Would Deposits in Transit Be Dealt with in a Bank