LESSON 3-4

1. LESSON 3-4 Prove A Journal Page Rule a Journal Page Start a New Journal Page Proving and Ruling at month end

2. BOTTOM OF PAGE PROCEDURES

3. 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

4. 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

5. A COMPLETED JOURNAL PAGE Debit Totals Credit Totals: General Sales Cash Totals

6. 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

7. A COMPLETED JOURNAL PAGE Debit Totals Credit Totals: General Sales Cash Totals

8. 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

9. End of Month PROCEDURES

10. 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 Totals Credit Totals: General Sales Cash Totals

11. 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

12. 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

13. 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

14. 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

15. Total on Page 1: $10,135.00 Complete OYO 3-1, 3-2, 3-3, 3-4

16. 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

17. STANDARD ACCOUNTING PRACTICES