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

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LESSON 3-4

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Lesson 3 4

LESSON 3-4

Prove A Journal Page

Rule a Journal Page

Start a New Journal Page

Proving and Ruling at month end


Lesson 3 4

BOTTOM OF PAGE PROCEDURES


Ruling a journal

  • 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

Ruling a Journal

LESSON 3-1


Ruling a journal page

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

RULING A JOURNAL PAGE


A completed journal page

A COMPLETED JOURNAL PAGE

Debit TotalsCredit Totals:

General

Sales

Cash

Totals


Proving a journal page

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

  • Add each amount column

  • Sum debit column totals and Sum credit column totals

  • Verify Sum of Debits = Sum of Credits

PROVING A JOURNAL PAGE


A completed journal page1

A COMPLETED JOURNAL PAGE

Debit TotalsCredit Totals:

General

Sales

Cash

Totals


Starting a new journal page

STARTING A NEW JOURNAL PAGE

  • 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


Lesson 3 4

End of Month

PROCEDURES


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

End of Month Procedures

Debit TotalsCredit Totals:

General

Sales

Cash

Totals


Proving cash

PROVING CASH

  • 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


Proving cash1

PROVING CASH

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


Work together 3 4

WORK TOGETHER 3-4

Debits Credits

General: $4958.00$2255.00

Sales: $3385.00

Cash $4255.00$3573.00

Total: $9,213.00$9,213.00


Work together 3 41

WORK TOGETHER 3-4

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


Complete oyo 3 1 3 2 3 3 3 4

Total on Page 1: $10,135.00

Complete OYO 3-1, 3-2, 3-3, 3-4


Standard accounting practices

STANDARD ACCOUNTING PRACTICES

  • 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


Standard accounting practices1

STANDARD ACCOUNTING PRACTICES


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