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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

LESSON 3-4

Prove A Journal Page

Rule a Journal Page

Start a New Journal Page

Proving and Ruling at month end



Ruling a journal

Ruling a Journal

LESSON 3-1


Ruling a journal page

Five Steps: indicate column totals on the last line of the page

  • 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 indicate column totals on the last line of the page

Debit Totals Credit Totals:

General

Sales

Cash

Totals


Proving a journal page

Proving indicate column totals on the last line of the page: 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 indicate column totals on the last line of the page

Debit Totals Credit Totals:

General

Sales

Cash

Totals


Starting a new journal page
STARTING A NEW JOURNAL PAGE indicate column totals on the last line of the 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 indicate column totals on the last line of the page

PROCEDURES


End of month procedures

  • Prove and Rule Column totals indicate column totals on the last line of the page

    • 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 Totals Credit Totals:

General

Sales

Cash

Totals


Proving cash
PROVING CASH indicate column totals on the last line of the page

  • 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 indicate column totals on the last line of the page

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 indicate column totals on the last line of the page

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 indicate column totals on the last line of the page

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 indicate column totals on the last line of the page

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


Standard accounting practices
STANDARD ACCOUNTING PRACTICES indicate column totals on the last line of the page

  • 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 indicate column totals on the last line of the page