The items listed below were identified while preparing a bank reconciliation for the company's checking account as of March 31.Cash balance according to the general ledger

-Refer to Dance Town Academy. How will the deposits in transit be handled on a bank reconciliation?
A)add to the balance from the company records
B)subtract from the balance from the company records
C)add to the bank statement balance
D)subtract from the bank statement balance

Question

The items listed below were identified while preparing a bank reconciliation for the company's checking account as of March 31.Cash balance according to the general ledger

-Refer to Dance Town Academy. How will the deposits in transit be handled on a bank reconciliation?
A)add to the balance from the company records 
B)subtract from the balance from the company records 
C)add to the bank statement balance 
D)subtract from the bank statement balance

Quizplus · Accepted Answer

Deposits in transit are amounts that have been recorded by the company but not yet reflected on the bank statement. Therefore, they are added to the bank statement balance to reconcile the company's records with the bank's records.

The Items Listed Below Were Identified While Preparing a Bank