# LESSON 3-4 - PowerPoint PPT Presentation

1 / 17

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

I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.

LESSON 3-4

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.

- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -

## 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

### Ruling a Journal

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

### A COMPLETED JOURNAL PAGE

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

• Sum debit column totals and Sum credit column totals

• Verify Sum of Debits = Sum of Credits

### A COMPLETED JOURNAL PAGE

Debit TotalsCredit Totals:

General

Sales

Cash

Totals

### 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

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: 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 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

Total:

Less cash paid during month

Total:

Cash balance at end of month

### 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 3-4

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

Total on Page 1: \$10,135.00

### 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