LESSON 4 3 Completed General Ledger Proving Cash

LESSON 4 -3 Completed General Ledger, Proving Cash, and Making Correcting Entries Original created by M. C. Mc. Laughlin, Thomson/South-Western Modified by Deborah L. Burns, Johnston County Schools, West Johnston High School CENTURY 21 ACCOUNTING © Thomson/South-Western

2 GENERAL LEDGER WITH POSTING COMPLETED page 102 (continued on next slide) CENTURY 21 ACCOUNTING © Thomson/South-Western LESSON 4 -3

3 GENERAL LEDGER WITH POSTING COMPLETED page 103 (continued on next slide) CENTURY 21 ACCOUNTING © Thomson/South-Western LESSON 4 -3

4 GENERAL LEDGER WITH POSTING COMPLETED page 103 (continued on next slide) CENTURY 21 ACCOUNTING © Thomson/South-Western LESSON 4 -3

5 GENERAL LEDGER WITH POSTING COMPLETED page 104 (continued on next slide) CENTURY 21 ACCOUNTING © Thomson/South-Western LESSON 4 -3

6 GENERAL LEDGER WITH POSTING COMPLETED page 104 (continued on next slide) CENTURY 21 ACCOUNTING © Thomson/South-Western LESSON 4 -3

7 GENERAL LEDGER WITH POSTING COMPLETED page 105 (continued on next slide) CENTURY 21 ACCOUNTING © Thomson/South-Western LESSON 4 -3

8 GENERAL LEDGER WITH POSTING COMPLETED page 105 (continued from previous slide) CENTURY 21 ACCOUNTING © Thomson/South-Western LESSON 4 -3

9 PROVING CASH page 106 ØDetermining that the amount of cash agrees with the balance of the cash account in the accounting records is called proving cash ØBusinesses always proves cash at the end of a month ØIf the cash balance as shown in the checkbook equals the cash balance in the cash account, then cash is proved CENTURY 21 ACCOUNTING © Thomson/South-Western LESSON 4 -3

10 MEMORANDUM FOR A CORRECTING ENTRY page 106 • When an error in a journal entry has already been posted, the incorrect journal entry should be corrected with an additional journal entry • A journal entry made to correct an error in the ledger is called a correcting entry • The source document for a correcting entry is the memorandum CENTURY 21 ACCOUNTING © Thomson/South-Western LESSON 4 -3

11 JOURNAL ENTRY TO RECORD A CORRECTING ENTRY page 107 November 13. Discovered that a payment of cash for advertising in October was journalized and posted in error as a debit to Miscellaneous Expense instead of Advertising Expense, $140. 00. Memorandum No. 15. 1 2 Date 4 Credit Debit Source Document 3 CENTURY 21 ACCOUNTING © Thomson/South-Western LESSON 4 -3

12 TERMS REVIEW page 108 n proving cash n correcting entry CENTURY 21 ACCOUNTING © Thomson/South-Western LESSON 4 -3