5 Bank Reconciliation Deposit in Transit Examples

Want to learn more examples of bank reconciliation deposits in transit? Read on.


When you’re going through your bank transactions, you might notice some cases where the money you deposited doesn’t seem to be reflected in your account as expected.

The cash balance per bank is lower than expected.

These deposits that are still pending, commonly referred to as “deposits in transit,” play a crucial role in making sure that your bank reconciliation truly mirrors your real account balance.

They are like the missing puzzle pieces that help complete the picture of the bank balance.

Deposits in transit are added to the bank balance.

To keep your financial records accurate and avoid any discrepancies in your accounts, it’s crucial to have a good grasp of deposits in transit and account for them correctly.

This ensures that the information reflects the real bank balance of your business or personal accounts.

Properly handling deposits in transit helps in maintaining the integrity of your financial records.

Deposits in transit refer to the funds you’ve submitted to your bank but haven’t been officially recorded in your bank statement.

These are essentially pending deposits that are in the process of being added to your account balance.

Due to the timing differences between your deposit and the bank’s processing, these deposits are recorded as outstanding items on your bank reconciliation.

Check deposit near the bank’s cutoff date

bank's cuttoff time usually 12:00 PM

In this example of a deposit in transit, related to bank reconciliation, we look at a check deposit made near the end of the month.

Imagine you made a check deposit at your bank on the last day of the month, recorded in the cash book, and your bank statement was generated the following day.

Since the bank record is generated daily or periodically, it would not include the deposit you made on the last day of the month.

In this case, the deposit would be considered a deposit in transit, as it has not yet cleared the bank.

The deposit is included in the book balance through journal entries, but not yet in the bank records.

Weekend or holiday delays

With this example, discussing bank reconciliation, we look at how a weekend or holiday creates a deposit in transit.

If you deposited on a Friday evening or during a weekend, it may not be credited to your account until the next business day.

Similarly, if you deposited on a public holiday, it might take an extra day for the deposit to be credited to your account.

In such instances, the deposits would appear as deposits in transit until the bank processes them and includes them in your bank record.

Delayed Mail Deposits

Delayed mail deposits, as an example, do create a deposit in transit in a bank reconciliation.

Sometimes, you may mail your deposits to the bank, and there may be delays in the postal system.

For example, you drop your deposit envelope in a mailbox on Monday, but due to unforeseen circumstances, it takes an extra day or two to reach the bank.

Until the bank receives and processes the deposit, it would be considered a deposit in transit.

Remote Deposit Capture Delay

Remote deposit capture delay is one of the causes of deposits in transit relative to bank reconciliation, see the example:

Many banks nowadays provide the convenience of remote deposit capture, allowing you to deposit checks using your smartphone or a scanner.

However, even with this convenient method, there might still be a delay in the bank’s processing.

The deposit will not be considered cleared until the bank processes and credits the amount to your account.

Bank Processing Delays

Bank processing delays, in terms of bank reconciliation, may result in the occurrence of deposits in transit, this is an example:

Occasionally, banks may experience processing delays due to system issues, high volumes of deposits, or other operational reasons.

In such situations, the bank may not post your deposit immediately, resulting in a delay until the deposit is reflected on your bank records.

Until the bank processes the deposit, it remains a deposit in transit.

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