@Qlad I look at when the cash hits the books and when the cash was not recorded on the books. If I deposited cash today, it would post to my account, so when I do the bank rec, I'll include it as a deposit in transit. The trick to kiting is not recording the disbursement, so you think you have more cash than you actually have.
If I simply wrote a check on one account, booked the receipt, or deposit in transit, decided to not book the disbursement of the check I wrote, my balance would be overstated at year. And when I do the reconciliation for year end, I would clear because the disbursing bank will obviously have no record of the check until maybe 3-4 days later, while the receiving bank would, so nothing looks wrong, until you compare statement and rec to the first 3-5 days of the very next month.
I always look at when the when deposit was made per books and when the disbursement is made per book and get the correct answer. If entry for deposit is booked in December, entry for disbursement is booked in January, then it's probably something funny going on (Kiting) lol.
FAR - 93
REG - 87
BEC - 84!!!!
AUD - 99!!!!!! CPA exam complete.
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