Final answer:
In bank reconciliation, a company should add the unprocessed 4. deposit to the cash balance per bank statement, reflecting it as a deposit in transit.
Step-by-step explanation:
When a company makes a bank deposit that does not appear on the bank statement by the end of the month, it must account for this in the bank reconciliation process. The correct action is to add the deposit to the cash balance per bank statement. This is because the deposit is in transit and has not yet been processed by the bank. Therefore, the company should adjust the bank statement balance to reflect the true amount of cash that should be available once the deposit is processed. This ensures that both the bank and the company's records will match. It's important to note that deposits in transit are a normal part of bank reconciliations and do not require any communication with the bank in the form of a debit memorandum, as the deposit will be reflected in the following month's statement.
In preparing the September 30 bank reconciliation, the company should deduct the deposit from the September 30 book balance and add it to the October 1 book balance. This is because the company made a bank deposit on September 30 that did not appear on the bank statement dated September 30, so it needs to be accounted for in the book balance. By deducting the deposit from the September 30 book balance and adding it to the October 1 book balance, the company can ensure that its books match with the bank statement.