Deposits in transit Select one: a. have been recorded on the company's books but not yet by the bank. b. have not been recorded by the bank or the company. c. are customers' checks that have not yet been received by the company. d. have been recorded by the bank but not yet by the company.

Question

Business

Rhianna Decker

7 April, 02:53

Deposits in transit Select one: a. have been recorded on the company's books but not yet by the bank. b. have not been recorded by the bank or the company. c. are customers' checks that have not yet been received by the company. d. have been recorded by the bank but not yet by the company.

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London Monroe · Answer 1

a. have been recorded on the company's books but not yet by the bank

Explanation:

The deposit in transit means the deposit is recorded in the book of the company accounts but the same is not recorded in the bank books of account unless when they are not deposited.

So while preparing the bank reconciliation statement, we added the deposit in transit and deduct the outstanding checks in the bank books of accounts