CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

LESSON 6-4LESSON 6-4

Finding and Correcting Errors on the Work Sheet

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

LFS – Unit 3, Chapter 6LFS – Unit 3, Chapter 6 Unit Essential QUnit Essential Q

What must all businesses do at the end of a fiscal period?

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LESSON 6-1

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

Lesson Essential QuestionLesson Essential Question

What is the purpose of a worksheet?

Acquisition Lesson Questions: What is a worksheet? How and when do I prepare a worksheet? How do you find net income or net loss?

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LESSON 6-1

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

NotesNotes

Checking errors If difference is 1 (.01, .10, 1.00 …), error is most likely

addition If difference is divisible by 2, most likely debit recorded as

credit or vice versa If difference is divisible by 9:

Slide ex. 9.00 instead of 90.00 Transposition ex. 13 instead of 31

Omitted amount – look for difference on trial balance, ledgers or journal

Always work backwards

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LESSON 6-4

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

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LESSON 6-4

CORRECTING AN ERROR IN POSTING TO CORRECTING AN ERROR IN POSTING TO THE WRONG ACCOUNTTHE WRONG ACCOUNT page 168

1. Draw a line through the entire incorrect entry. Recalculate the account balance and correct the work sheet.

22 Correct entryCorrect entry

11 Incorrect entryIncorrect entry

2. Record the posting in the correct account. Recalculate the account balance, and correct the work sheet.

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

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LESSON 6-4

CORRECTING AN INCORRECT AMOUNTCORRECTING AN INCORRECT AMOUNT

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page 169

1. Draw a line through the incorrect amount.

2. Write the correct amount just above the correction in the same space.

3. Recalculate the account balance, and correct the account balance on the work sheet.

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

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LESSON 6-4

CORRECTING AN AMOUNT POSTED TO CORRECTING AN AMOUNT POSTED TO THE WRONG COLUMNTHE WRONG COLUMN

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page 169

6. Recalculate the account balance, and correct the work sheet.

5. Record the posting in the correct amount column.

4. Draw a line through the incorrect item in the account.

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