After preparing a bank reconciliation,no adjusting journal entries need to be made for outstanding cheques or deposits in transit.

Question

Quizplus · Accepted Answer

Outstanding checks and deposits in transit are timing differences that resolve themselves when the checks are cashed or the deposits are processed. They do not require adjusting journal entries because they are already recorded in the company's books.

After Preparing a Bank Reconciliation,no Adjusting Journal Entries Need to Be