In reconciling a bank statement,the bank balance is $1 000 and the chequebook balance is $1 205.Which of the following is the MOST probable reason why the chequebook balance is larger than the bank balance?
A)The bank has not cleared certain cheques.
B)A deposit in transit was made at the end of the month.
C)The bank has added interest revenue to the account balance.
D)The bank received an EFT from a customer.

Question

Quizplus · Accepted Answer

A deposit in transit means that a deposit was made by the company and it has not yet cleared in the bank. Hence, the chequebook balance may be larger than the bank balance because of this outstanding deposit.

In Reconciling a Bank Statement,the Bank Balance Is $1 000