We will turn to page 311 therein and charge D. E. Hammond $134.59; and, as soon as the amount is posted, find the check number and write it at any convenient place on the same line. Then turn to the Journal or other book from which you are posting, and enter the check number in such a way that they can be easily footed. When you have new books made, have a special column for the check numbers. It must be remembered that the check number must ALWAYS be produced from the amount as it is posted, and not as it stands in the book of original entry. The check numbers should be so written in the Ledger that they can be easily footed to prove the footings. As we post $134.59 we find the check number to be 6, and to J. C. Brown's account, on page 571, we post $880.00 and produce the check number 0. Whenever the check number is 0, it must be entered the same as though it were a number. If you should neglect to write the check number when it is 0, the amount to be posted might be omitted. After posting all the items from the Journal, we then prove the work by reducing the sum of the column and the sum of the check numbers, which we find to be 9. When the check numbers are entered in the Journal, Cash Book, etc., we do not stop to see if the amounts there produce the same check numbers as they are produced from the Ledger; but if we find that the columns do not produce the same check, we start at the top of the column and prove the check number for each amount as it should be posted. If you find a wrong check number, you can refer to the account in the Ledger and find an error in posting, or that you have produced the wrong check number. Take the first amount and suppose it should have been posted to Hammond's account, page 341, as $143.59 instead of $134.59. Then we would have the check number 4. This of course would not agree in the proof, but upon examination we would find at once that we have a check number 4 which should have been 6. By this means an error can be located to the page and account without referring to the Ledger. When carrying totals forward the check numbers must also be carried up. The check number must be used for every item that is posted, and in taking a Trial Balance, if the debit and credit totals are taken, theu you must prove the footings of the accounts by the check numbers and carry them to the Trial Balance Book. This is done that each page of the Trial Balance Book can be proven separately. If only the debit and credit balances are taken in the Trial Balance, the balances must be proven as illustrated, by subtraction, always carrying the check number for the balances to the Trial Balance Book. If the system is used at all times, it will prove its great value; but, if items are posted, and footings are made without it, you need not expect good results. Ruling up Accounts. When an account is balanced, it should be ruled up and closed. If one side of the account should contain more items than the other, the closing lines for both sides of the account should be made on the same line; while the blank lines intervening should be ruled out by drawing a distinct line from the closing lines to the line containing the last item. This will prevent posting an item to an account which has been closed. How to Take a Trial Balance. Before taking a Trial Balance go through the Ledgers and carefully foot each account with a sharppointed pencil, and write the footings directly under the last item, placing units under units, tens under tens, etc. All acccounts that are found to balance should be ruled up as directed. Some accountants take a Trial Balance by using the total debit and credit footings, while others use only the debit and credit balances. By using only the debit and credit footings, a great amount of labor will be saved, which would be required to figure the differences. The advantages in using the debit and credit balances, are that the Trial Balance will be easier to foot, and that it will also show the balance of each account, which is required by many business men. In point of saving labor, the first method is favored. When the amounts have been transferred to the Trial Balance, and before the footings are made, the whole work should be checked as some errors might have been made which would not only necessitate checking, but would cause considerable trouble in changing footings. Errors in Trial Balances. Seeking errors in Trial Balances is the most disagreeable part of a bookkeeper's work. He may perform his work with the greatest care, yet errors will be made that are very perplexing and difficult to find. There are numerous methods for locating errors in Trial Balances and to prove each side of the Ledger separately, all of which render valuable assistance; but there are times when they will not work, the only salvation being to check the books. The following is one of the best methods for proving the Ledger that that can be adopted. Assuming this to be the In which two errors have purposely been made; one on the debit and one on the credit side. These are made to fully illustrate the method of detecting existing errors, and to ascertain the exact amount each side is wrong. The Ledger is increased by posting to it from the auxiliary books. and is diminished by ruling up accounts to close or to bring down bal ances. In footing the above Trial Balance we find that it is out $7.20. It frequently happens that an error like this would occur by omitting to post an item of this amount, or that one-half the amount might have been posted to the wrong side, and in many cases the error can be found very quickly by seeking these amounts. Without stopping to find this amount, the proof will be applied to ascertain on which side of the Ledger the errors exist, and deter mine how much each side must foot. Amount of the previous Trial Balance.........$ 0,000.00 $ 0.000.00 3,950.34 3,950.34 In order to prove the Ledger by this system, it will be seen that a record of all the accounts which have been closed or ruled up must be kept. It has been shown that the Trial Balance must foot $30,016.55, but we find the debit side to be $29,937.35, and the credit side $29,944.55. Therefore, we find the debit side is $30,016.55 29,937.35 $79.20 short. And the credit side $30,016.55 $72.00 short. We now know what amount is to be added to each side of the Triai Balance. Take the error of $79.20, which is divisable by 9. We conclude that it is an error of transposition or transplacement. Which being changed to dollars, we know that $80 has been taken as 80 cents. By referring to the Trial Balance we find that the only 80 in the debit column occurs in Schmidt's account; and turning to the Ledger we find that his debit is $80. After making this correction the total footing will agree with the proof. The credit side is found to be $72.00 less than the proof. Applying the same rules, we find that it is an error of transposition, as it is divisable by 9. 72 divided by 9=8. Now follow down the credit column and find which figure in the dollar column is 8 more than the figure (on the same line) in the tens of dollars column, and we find that H. A. Fuller has a credit of $1,519.24; the figure 9 in the dollar column being 8 more than the figure 1 in the tens of dollars column, and by referring to his account in the Ledger, we find his credit to be $1,591.24. When this correction is made, both sides of the Trial Balance will be equal and agree with the proof. Should the $72.00 be in excess of the proof, you would find which figure in the dollar column is 8 less than the figure (on same line) in the tens of dollars column. If this system is applied, it will be found in most cases to produce the exact amount of the Trial Balance, and to find the error at once. Combination Check Journal. The cuts illustrating this method are photo-engraved from an original page of my Combination Check Journal. For lack of space the page has been divided; the first represents the Debit, and the second the Credit side. The page is ruled short to show the foot lines. (See pages 234 and 235.) A careful study of the arrangement of this book will prove its great value; first, the two cuts represent an original page, the division between the Debit and Credit sides being the explanation column in the center. The Debit and Credit Ledger titles are together, next to these are the Ledger folio columns, and nearest to these are the columns mostly used for posting. This brings the Ledger Titles, folios, and amounts all together, and is a great convenience in posting. The columns for Debtors' accounts Debited and Credited are used for all amounts charged or credited to the customers. It is not meant by this that the sales are to be Journalized, but the column for Debtors' accounts Debited is to be used with the Credit Sales column. The amount of the Credit Sales for each day is taken from the Sales Book and entered in these columns for record only. The difference between the Debtors' columns will show the amount due the firm. The Creditors' accounts Cr. and Dr. are used the same, except all the Creditors' paid are charged in the Creditors' Debit column, and all purchases, etc., entered in the Creditors' credit column; the difference between these columns shows the amount of the firm's indebtedness. All the columns are to be posted in total at the end of the month, except Expense, Customers' Debit and the Credit Sales column, unless a charge affecting the Debtors should occur other than Credit Sales. It will be seen that there is but one column for Expense: this is used for all the accounts as classified in the record above. When an entry is made belonging to any of these accounts it is to be numbered, this number to correspond with that in the record, and is to be written in |