CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 6-4 Finding and Correcting Errors on the Work Sheet

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LFS – Unit 3, Chapter 6Unit Essential Q What must all businesses do at the end of a fiscal period? 2 LESSON 6-1

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning Lesson 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? 3 LESSON 6-1

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning Notes 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 instead of Transposition ex. 13 instead of 31 Omitted amount – look for difference on trial balance, ledgers or journal Always work backwards 4 LESSON 6-4

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 5 LESSON 6-4 CORRECTING AN ERROR IN POSTING TO THE WRONG ACCOUNT page Draw a line through the entire incorrect entry. Recalculate the account balance and correct the work sheet. 2 Correct entry 1 Incorrect 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 6 LESSON 6-4 CORRECTING AN INCORRECT AMOUNT page 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 7 LESSON 6-4 CORRECTING AN AMOUNT POSTED TO THE WRONG COLUMN 46 page 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