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    Identifying outstanding checks and deposits in transit

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    https://brainmass.com/business/bank-reconciliation/identifying-outstanding-checks-deposits-transit-165255

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    Part 1
    The list of deposits in transit can be identified by looking in the books, what amounts are deposited and checking in the bank. Deposits missing in the bank are in transit. The only missing deposit is Sep 30 deposit of $21,000. Deposits in transit as on Sep 30
    Date Amount
    Sep-30 $21,000

    Part 2
    For outstanding checks also we do it the same way. Take the list from the books and verify it against the bank. What is not appearing in the bank is outstanding.
    Date Amount
    Sep 3,680
    ...

    Solution Summary

    This solution explains how to identify outstanding checks and deposits in transit and then to prepare a bank reconciliation with adjusting entries for Terrick Company.

    $2.19