Presentation on theme: "Posting from a General Journal to a General Ledger Accounting I Chapter 4, Section 3."— Presentation transcript:
Posting from a General Journal to a General Ledger Accounting I Chapter 4, Section 3
Proving Cash Amount of cash in checkbook is the same as the balance in the Cash account
Correcting Entry Made to correct an error in the ledger. If transaction was journalized and posted incorrectly. Memorandum is source document.
Journalizing a Correcting Entry 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, $120.00. Memorandum No. 45. 1.Which accounts are affected? Advertising Expense Miscellaneous Expense 4.How is each amount entered in the accounts? Expense accounts increase on the debit side. Expense accounts decrease on the credit side. 3.How is each classification changed? Expenses are increased. Expenses are decreased. 2.How is each account classified? Advertising Expense is an expense account. Miscellaneous Expense is an expense account. Miscellaneous Expense Advertising Expense Debit Normal Balance Debit Normal Balance 120.00
Journalizing a Correcting Entry 3.Credit Miscellaneous Expense. 1. Write the date. 4.Write the source document number. 2.Debit Advertising Expense. 13 4 2
Problems Work Together 4-3 (Textbook pg. 108) On Your Own 4-3 (Textbook pg. 108) Application 4-3 (Textbook pg. 111) Mastery 4-4 (Textbook pg. 111)