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

Question

Quizplus · Accepted Answer

A deposit in transit on last month's bank reconciliation that is listed as a deposit on this month's bank statement has been processed by the bank.As a result,it should not be shown on this month's bank reconciliation.There is no longer a timing difference;the deposit has been recorded on the company's books and processed by the bank.

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