Deposit in transit definition including break down of areas in the definition. Analyzing the definition of key term often provides more insight about concepts. Deposit in transit can be defined as: Deposits recorded by the company but not yet recorded by the bank. Deposits in transit are similar to outstanding check because the deposit is basically outstanding, meaning we have recorded the deposit on our book and have generally make the deposit to the bank but the bank has not yet processed and recorded this deposit, so the deposit is in transit. When we create a bank reconciliation the deposits in transit are one the reconciling items.
