LESSON 4-3
Completed General
Ledger, Proving Cash, and
Making Correcting Entries
Original created by M.C. McLaughlin, 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
Determining that the amount of cash agrees with the balance of the
cash account in the accounting records is called proving cash
Businesses always proves cash at the end of a month
If 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
 proving cash
 correcting entry
CENTURY 21 ACCOUNTING © Thomson/South-Western
LESSON 4-3