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LESSON 3-4

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LESSON 3-4

Prove A Journal Page

Rule a Journal Page

Start a New Journal Page

Proving and Ruling at month end

BOTTOM OF PAGE PROCEDURES

- Ruling a Journal: drawing a single and double line to indicate column totals on the last line of the page
- On the last line of a journal page you add your debits and credit columns

LESSON 3-1

Five Steps:

- Leave one line below last transaction for proving
- DRAW a Single line below all columns of last entry
- Single line = figures above the line will be totaled

- “Carried Forward” entry on last line:
- Enter today’s date in date column
- Enter “Carried Forward” in Account Title
- Enter a check mark in “Post Ref”

- Sum each column and enter totals
- DRAW double lines under column totals
- Double line in accounting = sum of all figures in that column

Debit TotalsCredit Totals:

General

Sales

Cash

Totals

Proving: verifying debits and credits on a journal page equal

Purpose of proving:

- Verify that debits equal credits (must equal)
- Ensures accuracy of entries – critical step!
- If debits and credits do not equal you have an error
- You must find the errors before you move the totals to next page
Three Steps to Proving

- You must find the errors before you move the totals to next page

- Add each amount column
- Sum debit column totals and Sum credit column totals
- Verify Sum of Debits = Sum of Credits

Debit TotalsCredit Totals:

General

Sales

Cash

Totals

- Four Steps:
- Enter page number
- Enter date (year, month and day)
- Enter “Brought Forward” in Account Title with a check mark in “Post. Ref”.
- Enter the column totals from previous page

End of Month

PROCEDURES

- Prove and Rule Column totals
- Single Rule below last transaction
- Date: last day of month
- Account Title = Totals
- Sum Debit and Credit Column
- Double Line below Totals
- Prove Debit and credit Totals

Debit TotalsCredit Totals:

General

Sales

Cash

Totals

- Proving cash: determining that the amount of cash in cash account agrees with the accounting records
- Can be done at anytime
- Usually done at the end of each month
- Calculated as follows:
- Cash at beginning of month
- Plus cash received for the month
- Less cash spent during the month

Cash balance at the beginning of the month was 0.00

Last check stub written stated a Cash balance of $4964.00

Cash balance at beginning of Month

Cash received during the month:

Total:

Less cash paid during month

Total:

Cash balance at end of month

Debits Credits

General: $4958.00$2255.00

Sales: $3385.00

Cash $4255.00$3573.00

Total: $9,213.00$9,213.00

Cash beginning of Month 0.00

Cash received during the month: 5099.00

Total:5099.00

Less cash paid during month -3573.00

Cash balance at end of month $1526.00

Checkbook balance: $1526.00

Debits Credits

General: $4958.00$2255.00

Sales: $3929.00

Cash $5099.00$3573.00

Total: $10,057.00$10,057.00

Total on Page 1: $10,135.00

- Dollars, cents, and decimal symbols not used.
- Two 00 in cents column
- Single line when calculating column totals.
- Double line indicating totals
- Neatness is imperative!

- Draw a line through errors – write correction above
- If entire entry is incorrect – draw line and enter on next line if available.
- If error is incorrect and correct entries below – draw a line through incorrect areas and write above the correction
- Do not abbreviate unless necessary