When preparing a bank reconciliation,deposits in transit are
A)added to the bank statement balance.
B)deducted from the company's book balance.
C)added to the company's bank balance.
D)deducted from the bank statement balance.

Question

Quizplus · Accepted Answer

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

When Preparing a Bank Reconciliation,deposits in Transit Are