Journalizing Transactions

Chapter 3
the American Institute of Public Accountants
(AICPA ) (p. 55)
• Founded in 1887, the AICPA represents the CPA profession nationally
regarding rule-making and standard-setting, and serves as an
advocate before legislative bodies, public interest groups and other
professional organizations. The AICPA develops standards for audits
of private companies and other services by CPAs; provides
educational guidance materials to its members; develops and grades
the Uniform CPA Examination; and monitors and enforces
compliance with the profession’s technical and ethical standards.
• The AICPA’s founding established accountancy as a profession
distinguished by rigorous educational requirements, high
professional standards, a strict code of professional ethics, a
licensing status and a commitment to serving the public interest.
Mission

• Powering the success of global business, CPAs, CGMAs and

specialty credentials by providing the most relevant knowledge,
resources and advocacy, and protecting the evolving public
interest.
3.1 Journals, Source Documents, and
Recording Entries in a Journal
Journals and Journalizing
• Journal – a form for recording transactions in chronological
order

• Journalizing – recording transactions in a journal

Why use journals?
• More permanent recording than the accounting equation

• Can be specialized according to the needs of the company

• The nature of the business and the number of transactions to

be recorded determine the kind of journal to be used.
 A Journal amount column headed
with an account title is called a

A Five- Column Journal special amount column.

These columns are used for
transactions that occur frequently.

JOURNAL
1 2 3 4 5
GENERAL CASH
DOC. POST. SALES
Date Account Title
NO. REF. DEBIT CREDIT CREDIT DEBIT CREDIT

1 1
2 2
3 3
4 4

A Journal amount column not

headed with an account title is
called a general amount column.
Accuracy
• Information recorded must include DT and CT parts of each
transaction.

• Verified by comparing data in journal with transaction data.

Chronological Order
• Recorded in order by date
• i.e. 1st, then 3rd, then 5th etc.

• Makes the information for a specific transaction easy to find

Double-Entry Accounting
• Entry – the information for each transaction that is recorded in
a journal

• Double-entry accounting – recording of the DEBIT and the

CREDIT parts of a transaction.

• This ensures DEBIT = CREDIT

Source Document
• Source document – a business paper from which information is
obtained for a journal entry.
This part goes to the person you are
paying
• Example:
• Check stub
Check Stub
• Source document fro CASH payments
Accounting Concept :Objective Evidence
• This concept is applied when a source document is prepared
for each transaction.
More examples of source documents

• Sales Invoices
(also sales ticket or sales slip)

• This is prepared in duplicate

• Original to customer
• Copy used as source document
• Receipts

• For cash received other

than sales

• Must be prenumbered
• Calculator Tapes

• End of day –
Must be dated
and numbered
• Memorandums

• Used when no other

source documents is
prepared for transaction

Or

• When an additional
explanation is needed
about a transaction
Receiving Cash from the owner as an
investment
• August 1. Received cash from owner as an investment, $
5000.00. Receipt No. 1

CASH (asset)
5000.00

Kim Park, Capital (O.E.)

5000.00
 Receiving Cash from the owner as an
investment
JOURNAL
1 2 3 4 5
GENERAL CASH
DOC. POST. SALES
Date Account Title
NO. REF. DEBIT CREDIT CREDIT DEBIT CREDIT
2015
1
Aug
1 Kim Park, Capital R1 5 000.00 5 000.00 1
2 2
3 3
4 4

Source document – Receipt No. 1 Capital (Owner’s Equity)

(Objective evidence)
Paid Cash For Supplies
• August 3. Paid cash for supplies, $ 275.00. Check No. 1

CASH (asset)
275.00

Suppliesl (asset)
275.00
 Paid Cash For Supplies
JOURNAL
1 2 3 4 5
GENERAL CASH
DOC. POST. SALES
Date Account Title
NO. REF. DEBIT CREDIT CREDIT DEBIT CREDIT
2015
1
Aug 1 Kim Park, Capital R1 5 000.00 5 000.00 1

2 3 Supplies C1 275.00 275.00 2

3 3
4 4

Source document – Check No. 1 Supplies (asset)

(Objective evidence)
Work Together 3.1
• Apr. 1, Received cash from owner as an investment, $1500.00.
R1

CASH (asset)
1500.00

Norm Derner, Capital (O.E.)

1500.00
 JOURNAL
1 2 3 4 5
GENERAL CASH
DOC. POST. SALES
Date Account Title
NO. REF. DEBIT CREDIT CREDIT DEBIT CREDIT
2015
1
Apr 1 Norm Derner, Capital R1 1500.00 1500.00 1

2 2
3 3
4 4
Work Together 3.1
• Apr. 2, Paid cash for supplies, $375.00. C1

CASH (asset)
375.00

Supplies (asset)
375.00
 JOURNAL
1 2 3 4 5
GENERAL CASH
DOC. POST. SALES
Date Account Title
NO. REF. DEBIT CREDIT CREDIT DEBIT CREDIT
2015
1
Apr 1 Norm Derner, Capital R1 1500.00 1500.00 1

2 2 Supplies C1 375.00 375.00 2

3 3
4 4
Complete On your Own 3.1 and Workbook p.
33 nr. 1 – 12; p. 34 nr. 1 - 7

JOURNAL
1 2 3 4 5
GENERAL CASH
DOC. POST. SALES
Date Account Title
NO. REF. DEBIT CREDIT CREDIT DEBIT CREDIT
2015
1
Jun 1 Lou James, Capital R1 3000.00 3000.00 1

2 3 Supplies C1 950.00 950.00 2

3 3
4 4
3.2 Journalizing Buying Insurance, Buying on
Account, and Paying on Account
Paid cash for insurance
• August 4, Paid cash for insurance, $ 1200.00, Check No. 2

CASH (asset)
1200.00

Prepaid Insurance (asset)

1200.00
 JOURNAL
1 2 3 4 5
GENERAL CASH
DOC. POST. SALES
Date Account Title
NO. REF. DEBIT CREDIT CREDIT DEBIT CREDIT
2015
1 1
Aug
2 2
3 4 Prepaid Insurance C2 1200.00 1200.00 3
4 4

Source document is Check No. 2 (C2)

[CONCEPT: Objective Evidence
Bought supplies on account
• August 7. Bought supplies on account from Supply Depot. $ 500.00.
Memorandum No. 1

Supplies (asset)
500.00

Acc. Pay. Supply Depot (liability)

500.00
 JOURNAL
1 2 3 4 5
GENERAL CASH
DOC. POST. SALES
Date Account Title
NO. REF. DEBIT CREDIT CREDIT DEBIT CREDIT

4 7 Supplies M1 500.00 4
5 Accounts Payable - Supply Depot 500.00 5

Source document is Memorandum No. 1 (M1)

[CONCEPT: Objective Evidence
Paid Cash on Account
• August 11. Paid cash on account to Supply Depot, $300.00. Check No. 3

Cash (asset)
300.00

Acc. Pay. Supply Depot (liability)

300.00
 JOURNAL
1 2 3 4 5
GENERAL CASH
DOC. POST. SALES
Date Account Title
NO. REF. DEBIT CREDIT CREDIT DEBIT CREDIT

5 11 Accounts Payable - Supply Depot C3 300.00 300.00 5

6 6

Source document is Check No. 3 (C3)

[CONCEPT: Objective Evidence
Work Together 3.2
• April 5. Bought supplies on account from Palm Supply. $ 500.00. M1

Supplies (asset)
500.00

Acc. Pay. Palm Supplyl (liability)

500.00
 JOURNAL
1 2 3 4 5
GENERAL CASH
DOC. POST. SALES
Date Account Title
NO. REF. DEBIT CREDIT CREDIT DEBIT CREDIT
2015
1
Apr 1 Norm Derner, Capital R1 1500.00 1500.00 1

2 2 Supplies C1 375.00 375.00 2

3 5 Supplies M1 500.00 3
4 Account payble - Palm Supply 500.00 4
• Apr. 7. Paid cash for Insurance, $300.00. C2

Cash (asset)
300.00

Insurance (asset)
300.00
 JOURNAL
1 2 3 4 5
GENERAL CASH
DOC. POST. SALES
Date Account Title
NO. REF. DEBIT CREDIT CREDIT DEBIT CREDIT
2015
1
Apr 1 Norm Derner, Capital R1 1500.00 1500.00 1

2 2 Supplies C1 375.00 375.00 2

3 5 Supplies M1 500.00 3
Account payble - Palm Supply 500.00
4 7 Insurance C2 300.00 300.00 4
• Apr. 9, Paid cash on account to Palm Supply, $250.00. C3

Cash (asset)
250.00

Acc. Pay. Palm Supply (liability)

250.00
 JOURNAL
1 2 3 4 5
GENERAL CASH
DOC. POST. SALES
Date Account Title
NO. REF. DEBIT CREDIT CREDIT DEBIT CREDIT
2015
1
Apr 1 Norm Derner, Capital R1 1500.00 1500.00 1

2 2 Supplies C1 375.00 375.00 2

3 5 Supplies M1 500.00 3
4 Account payble - Palm Supply 500.00 4
5 7 Insurance C2 300.00 300.00 5
6 9 Account payble - Palm Supply C3 250.00 250.00 6
Complete work on your own 3.2
5-Jun 9-Jun 10-Jun
Cash (asset) Supplies (asset) Cash (asset)
400.00 300.00 300.00

Insurance (asset) Acc. Pay. - OK Supplies (liability) Acc. Pay. - OK Supplies (liability)
400.00 300.00 300.00
 JOURNAL
1 2 3 4 5
GENERAL CASH
DOC. POST. SALES
Date Account Title
NO. REF. DEBIT CREDIT CREDIT DEBIT CREDIT
2015
1
Jun 1 Lou James, Capital R1 3000.00 3000.00 1

2 3 Supplies C1 950.00 950.00 2

3 5 Insurance C2 400.00 400.00 3
4 9 Supplies M1 300.00 4
5 Acc. Pay. - OK Supplies 300.00 5
6 10 Acc. Pay. - OK Supplies C3 300.00 300.00 6
3.3 Journalizing Transactions That Affect
Owner’s Equity and Receiving Cash on Account.
Receiving Cash From Sales
• August 12. Received cash from Sales; $295.00. Tape No. 12

Cash (asset)
295.00

Sales (O.E)
295.00
 JOURNAL
1 2 3 4 5
GENERAL CASH
DOC. POST. SALES
Date Account Title
NO. REF. DEBIT CREDIT CREDIT DEBIT CREDIT

7 12 Sales T12 295.00 295.00 7

Source document is Tape No. 12 (T12)

[CONCEPT: Objective Evidence
Sold Services on Account
• August 12. Sold services on account to Oakdale School, $350.00. Sales
Invoice No. 1

Acc. Rec. - Oakdale School

(Asset)
350.00

Sales (O.E)
350.00
 JOURNAL
1 2 3 4 5
GENERAL CASH
DOC. POST. SALES
Date Account Title
NO. REF. DEBIT CREDIT CREDIT DEBIT CREDIT

8 12 Acc. Rec. - Oakdale School S1 350.00 350.00 7

Source document is Sales Invoice No. 1 (S1)

[CONCEPT: Objective Evidence
Paid Cash for Expenses
• August 12. Paid cash for rent, $300.00. Check no. 4

Cash (Asset)
300.00

Rent Expense (O.E)

300.00
 JOURNAL
1 2 3 4 5
GENERAL CASH
DOC. POST. SALES
Date Account Title
NO. REF. DEBIT CREDIT CREDIT DEBIT CREDIT

9 12 Rent Expense C4 300.00 300.00 9

10 12 Utilities Expense C5 40.00 40.00 10

Source document is Check No. 4 (C4) and Check No. 5 (C5)

[CONCEPT: Objective Evidence
Received Cash on Account
• August 18. Received cash on account from Oakdale, $200.00. Receipt no.
2
Cash (Asset)
200.00

Acc. Rec. - Oakdale School (asset)

200.00
 JOURNAL
1 2 3 4 5
GENERAL CASH
DOC. POST. SALES
Date Account Title
NO. REF. DEBIT CREDIT CREDIT DEBIT CREDIT

11 18 Acc. Rec. Oakdale School R2 200.00 200.00 11

Source document is Receipt No. 2 (R2)

[CONCEPT: Objective Evidence
Paid cash to owner for personal use
• August 18. Paid cash to owner for personal use, $125.00. Check No. 6

Cash (Asset)
125.00

Kim Park, Drawing (O.E.)

125.00
 JOURNAL
1 2 3 4 5
GENERAL CASH
DOC. POST. SALES
Date Account Title
NO. REF. DEBIT CREDIT CREDIT DEBIT CREDIT

12 18 Kim Park, Drawing C6 125.00 125.00

Source document is Check No. 6 (C6)

[CONCEPT: Objective Evidence
Work Together 3.3
• April 12. Paid cash for rent, $ 1000.00. C4

Cash (Asset)
1000.00

Rent Expense (O.E.)

1000.00
 JOURNAL
1 2 3 4 5
GENERAL CASH
DOC. POST. SALES
Date Account Title
NO. REF. DEBIT CREDIT CREDIT DEBIT CREDIT
2015
1
Apr 1 Norm Derner, Capital R1 1500.00 1500.00 1

2 2 Supplies C1 375.00 375.00 2

3 5 Supplies M1 500.00 3
4 Account payble - Palm Supply 500.00 4
5 7 Insurance C2 300.00 300.00 5
6 9 Account payble - Palm Supply C3 250.00 250.00 6
7 12 Rent Expense C4 1000.00 1000.00 7
Work Together 3.3
• April 13. Received cash from sales, $ 2500.00. T13

Cash (Asset)
2500.00

Sales (asset)
( Owner’s Equity)
2500.00
 JOURNAL
1 2 3 4 5
GENERAL CASH
DOC. POST. SALES
Date Account Title
NO. REF. DEBIT CREDIT CREDIT DEBIT CREDIT
2015
1
Apr 1 Norm Derner, Capital R1 1500.00 1500.00 1

2 2 Supplies C1 375.00 375.00 2

3 5 Supplies M1 500.00 3
4 Account payble - Palm Supply 500.00 4
5 7 Insurance C2 300.00 300.00 5
6 9 Account payble - Palm Supply C3 250.00 250.00 6
7 12 Rent Expense C4 1000.00 1000.00 7
8 13 Sales T13 2500.00 2500.00 8
Work Together 3.3
• April 14. Sold services on account to L. Rohe, $ 510.00. S1

Acc. Rec. - L. Rohe (Asset)

510.00

Sales (asset)
510.00
 JOURNAL
1 2 3 4 5
GENERAL CASH
DOC. POST. SALES
Date Account Title
NO. REF. DEBIT CREDIT CREDIT DEBIT CREDIT
2015
1
Apr 1 Norm Derner, Capital R1 1500.00 1500.00 1

2 2 Supplies C1 375.00 375.00 2

3 5 Supplies M1 500.00 3
4 Account payble - Palm Supply 500.00 4
5 7 Insurance C2 300.00 300.00 5
6 9 Account payble - Palm Supply C3 250.00 250.00 6
7 12 Rent Expense C4 1000.00 1000.00 7
8 13 Sales T13 2500.00 2500.00 8
9 14 Acc. Rec. - L. Rohe S1 510.00 510.00 9
Work Together 3.3
• April 19. Paid cash for electric bill, $ 148.00. C5

Cash (asset)
148.00

Utilities (O.E.)
148.00
 JOURNAL
1 2 3 4 5
GENERAL CASH
DOC. POST. SALES
Date Account Title
NO. REF. DEBIT CREDIT CREDIT DEBIT CREDIT
2015
1
Apr 1 Norm Derner, Capital R1 1500.00 1500.00 1

2 2 Supplies C1 375.00 375.00 2

3 5 Supplies M1 500.00 3
4 Account payble - Palm Supply 500.00 4
5 7 Insurance C2 300.00 300.00 5
6 9 Account payble - Palm Supply C3 250.00 250.00 6
7 12 Rent Expense C4 1000.00 1000.00 7
8 13 Sales T13 2500.00 2500.00 8
9 14 Acc. Rec. - L. Rohe S1 510.00 510.00 9
10 19 Utilities C5 148.00 148.00 10
Work Together 3.3
• April 20. Received cash on account from L. Rohe, $ 225.00. R2

Cash (asset)
255.00

Acc. Rec. - L. Rohe (Asset)

255.00
 JOURNAL
1 2 3 4 5
GENERAL CASH
DOC. POST. SALES
Date Account Title
NO. REF. DEBIT CREDIT CREDIT DEBIT CREDIT
2015
1
Apr 1 Norm Derner, Capital R1 1500.00 1500.00 1

2 2 Supplies C1 375.00 375.00 2

3 5 Supplies M1 500.00 3
4 Account payble - Palm Supply 500.00 4
5 7 Insurance C2 300.00 300.00 5
6 9 Account payble - Palm Supply C3 250.00 250.00 6
7 12 Rent Expense C4 1000.00 1000.00 7
8 13 Sales T13 2500.00 2500.00 8
9 14 Acc. Rec. - L. Rohe S1 510.00 510.00 9
10 19 Utilities C5 148.00 148.00 10
11 20 Acc. Rec. - L. Rohe R2 255.00 255.00 11
Work Together 3.3
• April 21. Paid cash to owner for personal use, $ 1000.00. C6

Cash (asset)
1000.00

Norm Derner, Drawing (O.E)

1000.00
 JOURNAL
1 2 3 4 5
GENERAL CASH
DOC. POST. SALES
Date Account Title
NO. REF. DEBIT CREDIT CREDIT DEBIT CREDIT
2015
1
Apr 1 Norm Derner, Capital R1 1500.00 1500.00 1

2 2 Supplies C1 375.00 375.00 2

3 5 Supplies M1 500.00 3
4 Account payble - Palm Supply 500.00 4
5 7 Insurance C2 300.00 300.00 5
6 9 Account payble - Palm Supply C3 250.00 250.00 6
7 12 Rent Expense C4 1000.00 1000.00 7
8 13 Sales T13 2500.00 2500.00 8
9 14 Acc. Rec. - L. Rohe S1 510.00 510.00 9
10 19 Utilities C5 148.00 148.00 10
11 20 Acc. Rec. - L. Rohe R2 255.00 255.00 11
12 21 Norm Derner, Drawing C6 1000.00 1000.00 12
Complete On your Own 3.3
11-Jun 12-Jun 16-Jun
Cash (asset) Sales (O.E) Cash (asset)
525.00 700.00 2300.00

Rent Expense (O.E.) Acc. Rec. - C. Lord (asset) Sales (O.E.)

525.00 700.00 2300.00

17-Jun 19-Jun 20-Jun

Cash (asset) Cash (asset) Cash (asset)
37.00 350.00 850.00

Misc. Expense (O.E.) Acc. Rec. - C. Lord (asset) Lou James, Drawing (O.E)
37.00 300.00 850.00
 JOURNAL
1 2 3 4 5
GENERAL CASH
DOC. POST. SALES
Date Account Title
NO. REF. DEBIT CREDIT CREDIT DEBIT CREDIT
2015
1
Jun 1 Lou James, Capital R1 3000.00 3000.00 1

2 3 Supplies C1 950.00 950.00 2

3 5 Insurance C2 400.00 400.00 3
4 9 Supplies M1 300.00 4
5 Acc. Pay. - OK Supplies 300.00 5
6 10 Acc. Pay. - OK Supplies C3 300.00 300.00 6
7 11 Rent Expense C4 525.00 525.00 7
8 12 Acc. Rec. - C. Lord S1 700.00 700.00 8
9 16 Sales T16 2300.00 2300.00 9
10 17 Miscellaneous Expense C5 37.00 37.00 10
11 19 Acc. Rec. - C. Lord R2 350.00 350.00 11
12 20 Lou James, Drawing C6 850.00 850.00 12
13 13
3.4 Proving and Ruling a Journal
Proving a journal page
• Step 1: Add each column in the Journal

• Step 2: Write the total in the Proving Table

• Step 3: Add up all the totals in the Credit column

• Step 4: Add up all the totals in the Debit column

• Step 5: Check that the totals are equal – if not, go back and redo!
 JOURNAL
1 2 3 4 5
GENERAL CASH
DOC. POST. SALES
Date Account Title
NO. REF. DEBIT CREDIT CREDIT DEBIT CREDIT

Debit Credit
Column Column Totals Column Totals
General $ 3 543.00 $ 5 750.00
Sales 1 960.00
Cash 6 710.00 2 543.00

Totals $ 10 253.00 $ 10 253.00

Totals Equal
Ruling a Journal Page
• After a journal page has been proved, it is ruled.
 Single line after last entry

JOURNAL Page 1
1 2 3 4 5
GENERAL CASH
DOC. POST. SALES
Date Account Title
NO. REF. DEBIT CREDIT CREDIT DEBIT CREDIT
2015
1
Aug 1 Kim Park, Capital R1 5000.00 5000.00 1

2 3 Supplies C1 275.00 275.00 2

3 4 Prepaid insurance C2 1200.00 1200 3

23 20 Supplies M2 50.00 23
24 Account payble - Thomas Supply Co. 50.00 24
25 20 Carried Forward P 3543.00 5750.00 1960.00 6710.00 2543.00 25

Date

Carried Forward Tick mark Column Totals

Double Rule
 Starting a new Journal Page
JOURNAL page 2
1 2 3 4 5
GENERAL CASH
DOC. POST. SALES
Date Account Title
NO. REF. DEBIT CREDIT CREDIT DEBIT CREDIT
2015
1
Aug 20 Brought Forward P 3543.00 5750.00 1960.00 6710.00 2543.00 1

2 2
Proving and Ruling a Journal at the end of the Month
• Always prove and rule at the end of the month.

• Proved using the same steps as shown earlier.

• Then – cash is proved

• Then – journal is ruled.

Proving a Journal

Debit Credit
Column Column Totals Column Totals
General $ 3 543.00 $ 5 750.00
Sales 1 960.00
Cash 6 710.00 2 543.00

Totals $ 10 253.00 $ 10 253.00

Totals Equal
Proving cash
• Determining that the amount of cash agrees with the accounting records
is called proving cash.

• Cash can be proved at any time to verify the accuracy of the cash records

• Cash is ALWAYS proved at the end of the month.

• There are two steps to proving cash

Step 1: Calculate the cash Balance
• Cash on hand at the beginning of the month………………………. SDG 150.00

• Plus total cash received during the month …………………………. SDG 850.00
• This amount is the total of the journal’s Cash Debit Column

• Equals total ……………………………………………………………………….. SDG 1000.00

• Less total cash paid during the month …………………………………. SDG 500.00
• This amount is the total of the journal’s Cash Credit Column

• Equals cash balance at the end of the month ………………......... SDG 500.00
Step 2:
• Verify that the cash balance equals the checkbook balance on the next
unused check stub in the check stub

• Checkbook balance on the next unused check stub ……………… SDG 500.00

• Since the cash balance = checkbook balance – CASH is PROVED

• We’ll look at checkbooks and check stubs in greater detail in Chapter 5

 Proving and Ruling a Journal at the end of the Month
• Exactly the same as ruling a journal page, with two exceptions:
JOURNAL page 2
1 2 3 4 5
GENERAL CASH
DOC. POST. SALES
Date Account Title
NO. REF. DEBIT CREDIT CREDIT DEBIT CREDIT
2015
1
Aug 20 Brought Forward P 3543.00 5750.00 1960.00 6710.00 2543.00 1

2 2

15 31 Totals 4351.00 5750.00 3565.00 8315.00 3351.00 15

 Standard accounting Practices
• Errors – correct by neatly drawing a line through the incorrect item.
• Write the correct item immediately above the cancelled time.

JOURNAL page 2
1 2 3 4 5
GENERAL CASH
DOC. POST. SALES
Date Account Title
NO. REF. DEBIT CREDIT CREDIT DEBIT CREDIT

125.00
12 18 Kim Park, Drawing C6 125.00
1250.00
 • Sometimes an entire entry is incorrect and is discovered before the next
entry is journalized.
• Draw a neat line through all parts of the correct entry.
• Journalize the correct entry in the next blank line
JOURNAL
1 2 3 4 5
GENERAL CASH
DOC. POST. SALES
Date Account Title
NO. REF. DEBIT CREDIT CREDIT DEBIT CREDIT

12 18 Rent Expense C15 5.00 5.00

18 Repair Expense C15 50.00 50.00
 • Sometimes several correct entries are recorded after an incorrect entry is
made.
• The next blank line is several entries away.
• Draw a neat line through all incorrect parts of the entry.
• Neatly record the correct times on the same line as the incorrect times,
directly above the cancelled parts.
JOURNAL
1 2 3 4 5
GENERAL CASH
DOC. POST. SALES
Date Account Title
NO. REF. DEBIT CREDIT CREDIT DEBIT CREDIT

Suppl i es
12 18 Repair Expense C15 50.00 50.00
Some more Rules
• Words are written in full when space permits
• Abbreviations may ONLY be used when space is limited

• All items are legibly written (anyone can read it correctly)

• Monetary units ($ / SDG / etc) and decimal points are NOT used when
writing amounts on ruled accounting paper

• Two zeros are written in the cents column when an amount is even
• For example: SDG 50.00 or $ 40.00
• A single line is ruled across the amount columns to indicate a calculation
such as addition.

• A double line is rules across the amount columns to indicate that the
amounts are totals.

• In a journal, the double line also indicated that the debits = credits.

• NEATNESS IS VERY IMPORTANT IN ACCOUNTING RECORDS

 Work Together 3.4
JOURNAL
1 2 3 4 5
GENERAL CASH
DOC. POST. SALES
Date Account Title
NO. REF. DEBIT CREDIT CREDIT DEBIT CREDIT

13 23 Acc. Rec. - L. Rohe S2 375.00 13

14 27 Norm Derner, Drawing C7 500.00 500 14

Debit Credit
Column Column Totals Column Totals
General 4958.00 2255.00
Sales 3385.00
Cash 4255.00 3573.00

Totals 9213.00 9213.00

 JOURNAL
1 2 3 4 5
GENERAL CASH
DOC. POST. SALES
Date Account Title
NO. REF. DEBIT CREDIT CREDIT DEBIT CREDIT

13 23 Acc. Rec. - L. Rohe S2 375.00 13

14 27 Norm Derner, Drawing C7 500.00 500 14
27 Carried Forward P 4958.00 2255.00 3385 4225 3573

JOURNAL
1 2 3 4 5
GENERAL CASH
DOC. POST. SALES
Date Account Title
NO. REF. DEBIT CREDIT CREDIT DEBIT CREDIT
2015
1
Apr 27 Brought Forward P 4958.00 2255.00 3385.00 4255.00 3573 1

2 29 Acc. Re. - L. Rohe R3 300.00 300.00 2

3 30 Sales T30 544.00 544.00 3
 Debit Credit
Column Column Totals Column Totals
General 4958.00 2555.00
Sales 3929.00
Cash 5099.00 3573.00

Totals 10057.00 10057.00

Prove the cash

Cash on hand at the beginning of the month…………. 0.00
Plus total cash received during the month…………….. 5099.00
Equals Total…………………………………………………………….. 5099.00
Less total cash paid during the month……………………. 3573.00
Equals cash balance at the end of the month…………. 1526.00
Checkbook balance on the next unused check stub.. 1526.00
 JOURNAL
1 2 3 4 5
GENERAL CASH
DOC. POST. SALES
Date Account Title
NO. REF. DEBIT CREDIT CREDIT DEBIT CREDIT
2015
1
Apr 27 Brought Forward P 4958.00 2255.00 3385.00 4255.00 3573 1

2 29 Acc. Re. - L. Rohe R3 300.00 300.00 2

3 30 Sales T30 544.00 544.00 3
4 30 Totals 4958.00 2555.00 3929.00 5099.00 3573.00 4
Class work / Homework
• Complete On Your Own 3.4

• In the workbook, complete p. 33 – 35

• Complete the exercises that are on p. 80 - 84