The proper treatment of unrecorded deposits (deposits in transit) on a bank reconciliation when pass book balance is the starting point is ___________.

addition

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

deduction

No worries! We‘ve got your back. Try BYJU‘S free classes today!

ignore

No worries! We‘ve got your back. Try BYJU‘S free classes today!

none of the above

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Open in App

Solution

The correct option is A addition
In case of unrecorded deposits (deposits in transit) the entry would have been entered in the cash book and so the the cash book balance would be higher than the pass book balance.
Therefore, while preparing a bank reconciliation statement unrecorded deposits should be added.

Suggest Corrections

Similar questions

Q. The proper treatment of unrecorded deposits (deposits in transit) on a bank reconciliation is to show them as an _______________.

Q. The proper treatment of outstanding cheques on a bank reconciliation when balance as per cash book is the starting point is __________ .

In Bank Reconciliation Statement, when balance as per cash book is taken as the starting point, direct deposit by a customer into his bank 18,000 will be :

While preparing bank reconciliation statement, if balance as per pass book is starting point, direct deposits in bank should be:

Farkhanda Jabeen Ltd. receives a cheque for Rs. 100, records it in cash book and deposits it on the same day. A statement sent by the bank that day does not show Rs. 100. How is this shown on the bank reconciliation statement if starting point is pass book?

Join BYJU'S Learning Program