[mardybum13]

A salesman at my company deposited cash of 3000 on 26/08/2017. But the ATM machine had a problem. It gave no receipt and only 2500 was received in the bank. The remaining 500 was received in the bank on 01/10/2017.

Does this 500 count as a deposit in transit?

[Bourne]

It could count as a lying salesman…….

[cantpassagain1]

Ya, make sure that the sales person is accurate. If it was cash there shouldnt be a processing time, or that long of one. Also, why would the bank accept 2500 automatically and not the rest? If it was like the $10,000 rule banks must adhere to, im sure theyd take the whole deposit and not just the excess to examine.

[Missy]

Unless I had something in writing from the bank confirming $3k cash was indeed deposited on 8/26/17 but their mistake made the other $500 not show up for a month, I wouldn't call it a deposit in transit, I'd simply record the 2500 in August and the other 500 when it appeared in the bank. Usually a deposit in transit refers to a check and an auditor can verify the check date was before the deposit date for the days it was considered in transit.

Licensed Massachusetts Non Reporting CPA since 2012
Finance/Admin/HR Manager

[Tim]

The $500 is a bank error. It should be added to bank balance in the reconciliation of book balance to bank balance to get to the true balance. I guess if you treated it as a deposit in transit the same treatment would apply so it's really just semantics.

But deposit in transit is just if you give a check to the bank to deposit near the end of the month but they don't process it and post it to your account until the beginning of the next month.

[Author]

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