Deposits in transit is included on the bank reconciliation as a (n):

A. eduction from the balance per bank statement

B. addition to the balance per bank statement

C. addition to the balance per company books

D. deduction from the balance per the company's books

B. Addition to the balance per bank statement

Explanation:

The deposit in transits refers to as outstanding deposits, the customers deposits the check in our bank account but due to the time lag, the bank statement is not showing the amount of deposit in transit whereas our company books does. Therefore, we should add the amount of deposit in transit to the balance of bank statement, so our bank statement balance and company books balance can be same.

B. addition to the balance per bank statement

Explanation:

The bank reconciliation is one done between the balance per the books and balance per the bank statement. This is usually as a result of transactions known as reconciling items.

These are items that have either been recognized in books but yet to be recorded by the bank or vice versa, transactions recorded wrongly by one of the parties etc.

Deposits in transits are deposits that have been recorded in the books as an addition to the cash balance but yet to be recognized by the bank. Hence it ill be included in then reconciliation as an addition to the balance per bank statement for both balances to be reconciled.