Deposits in Transit Meaning | Accounting Share

Accounting glossary · Understand, connect, apply

Deposits in transit are receipts recorded in the entity’s cash records but not yet credited by the bank at the reconciliation date.

Example

A deposit made late on 31 March appears on the bank statement in April, creating a March timing difference.

Remember the difference

Add a valid deposit in transit to the bank-side balance. Do not record another cash receipt if the books already include it.

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Updated 3 November 2026. Examples are simplified for learning. Where a term depends on US law, IFRS, US GAAP or a historical rule, check the context explained above and the requirements relevant to your course.

Study references: OpenStax financial accounting and managerial accounting. For reporting requirements, consult the applicable IFRS Standards or FASB guidance. US tax terms should be checked against the relevant tax-year IRS instructions.

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