From page 4-4 of the VLN, in a bankreconciliation how are outstandingdeposits treated?A. Add to the company cash ledger balanceB. Subtract from the company cash ledgerbalanceC. Add to the bank statement balanceD. Subtract from the bank statement balance Bank ReconciliationTiming differences and/or ErrorsBANK'S RECORDСOMPANYCOMPANY'S RECORDBANKThe bank statement represents thebank's record of the company's accountat the bank.The company's cash account in thegeneral ledger is the company'sАСCOUNTBoth records are record of the company's bankkeeping track of account.this account.The bank statement shows the endingThey should be The cash account shows the endingthe same.balance of the account before the bankbalance before it is reconciled. It isaccount is reconciled. It is the balancethe balance before reconciliation.before reconciliation.The goal is to get both documents to be the same, by including everything, and fixing errors wherethey exist.Bank ReconciliationBank StatementCompany's Cash LedgerBalance Before reconciliationBalance Before reconciliation+ outstanding deposits- outstanding checks+Notes received/collected by bank+Interest received+/- bank errors-NSF checks-unrecorded debit cards and EFTS-Bank service fees+/- company errorsBalance After reconciliationBalance After reconciliationBank Account (Statement)Company Cash Account (Ledger)|+/- items that are recorded in the Company +/- items that are recorded on the Bank|Cash account (ledger) but HAVE NOT been Statement but HAVE NOT been recorded in therecorded on the Bank statement. Examples:|- outstanding checks+ outstanding deposits (deposits in transit)Company Cash account (ledger). For example:|+Notes received/collected by bank+Interest received|-NSF checks|-unrecorded debit cards and EFTS|-Bank service feesFix errors where they existFix errors where they existThe goal is to get both to be the same (by including everything); they both represent theCompany's bank account.After the bank reconciliation is completed, make sure to recordthe changes made to the cash account.

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Outstanding deposits is an item that has been recorded in the company’s cash book but has not br…

From page 4-4 of the VLN, in a bank reconciliation how are outstanding deposits treated? A. Add to the company cash ledger balance B. Subtract from the company cash ledger balance C. Add to the bank statement balance D. Subtract from the bank statement balance