Deposits in transit

Deposits in transit - bank statement balance. The Vector...

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Deposits in transit . Most companies make frequent cash deposits. Therefore, company records  may show one or more deposits, usually made on the last day included on the bank statement, that  do not appear on the bank statement. These deposits are called deposits in transit and cause the  bank statement balance to understate the company's actual cash balance. Since deposits in transit  have already been recorded in the company's books as cash receipts, they must be added to the 
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Unformatted text preview: bank statement balance. The Vector Management Group made a $3,000 deposit on the afternoon of April 30 that does not appear on the statement, so this deposit in transit is added to the bank statement balance. Vector Management Group Bank Reconciliation April 30, 20X8 Bank statement balance $8,202 Book balance $6,370 Add: Deposits in transit...
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This note was uploaded on 11/14/2011 for the course ACCT 1310 taught by Professor Staff during the Fall '10 term at Texas State.

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