In a bank reconciliation statement, how is a 'Deposit in transit' typically treated?

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Deducted from the bank's balanceIncluded as an addition to the bank's balanceAdded to the cash book's balanceRemoved from the cash book's balanceNo adjustment required

Explanation

A 'Deposit in transit' refers to funds that have been recorded in the company's cash book but have not yet been reflected in the bank statement. Therefore, it must be added to the bank balance in the reconciliation statement to align both records correctly.