Deposits in transit result because of a timing difference between the bank records and Ledger records.

Name: Deposits in transit result because of a timing difference between the bank records and Ledger records.
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Question

Quizplus · Accepted Answer

Deposits in transit occur when a company has recorded a deposit in its cash receipts journal, but the bank has not yet recorded the deposit in its records. This causes a timing difference between the company's ledger records and the bank's records.

Deposits in Transit Result Because of a Timing Difference Between