1. The problem asks: What is "Deposit in transit" in bank reconciliation? 2. In bank reconciliation, a "Deposit in transit" refers to an amount of money that has been received and recorded in the company's cash book but has not yet been recorded by the bank. 3. This means the deposit is already added to the company's cash book balance but not yet reflected in the bank statement. 4. Therefore, to reconcile the bank statement with the cash book, the deposit in transit must be added to the bank balance. 5. So, the correct answer is: Added to Bank Balance. Final answer: 1. Added to Bank Balance