Explanation:
a. Deposit in Transit at July 31 = Deposit in Transit, June 30 + Deposit as per Cash Book – Deposits as per Bank Book
= $690 + $17,970 - $15,770
= $2,890
b. Outstanding Checks at July 31 = Outstanding Checks at June 30 + Checks issued as per Cash Book – Checks cleared as per Bank Book
= $930 + $19,160 - $16,800
= $3,290
c. Deposits in Transit at August 31 = Deposits as per Bank Statement – Deposits as pr Books + Deposits in Transit, September 30
= $26,750 - $26,340 + $2,810
= $3,220
d. Outstanding Checks at August 31 = Checks cleared by Bank – Cash Disbursements as per Books + Outstanding Checks, September 30
= $24,370 - $23,030 + $2,440
= $3,780
