Answered: What is “Deposit in transit” in bank…

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter5: Internal Control And Cash

Section: Chapter Questions

Problem 5.17E

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Question

What is “Deposit in transit” in bank reconciliation?

Select one:

A. Subtracted From the Cash Book Balance

B. Added to Bank Balance

C. Subtracted From Bank Balance

D. Added to Cashbook Balance

Definition Definition Financial journal in which only cash-related transactions are recorded. Cash transactions are posted chronologically in the cash book, which is also called a subsidiary book. All the cash receipts are recorded on the debit side and all the cash payments are recorded on the credit side. An important point to remember is that the cash book never shows a credit balance; only a debit balance is shown in the cash book.

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