The amount of deposits in transit is included on the bank reconciliation as a (n)
A) deduction from the balance per the company's books
B) deduction from the balance per bank statement
C) addition to the balance per bank statement
D) addition to the balance per company books

Question

Quizplus · Accepted Answer

Deposits in transit are those deposits which have been made by the company but have not yet been recorded by the bank. Therefore, they will not be included in the balance per bank statement. They represent funds that the company is entitled to and therefore should be added to the balance per bank statement to arrive at the correct/cleared balance.

The Amount of Deposits in Transit Is Included on the Bank