108 FARM ACCOUNTING 



made through the journal when more than one account 

 is involved. Thus, if an item of $150 were posted to the 

 debit side of Cattle account, instead of the debit side of 

 Horses account, the correcting entry in the journal or cash 

 journal should express a debit to Horses account and a 

 credit to Cattle account of $r>". 



Finding Errors in the Cash Balance. Mention was 

 made above to the fact that the cash balance should be 

 verified occasionally. This means that an effort should be 

 made to determine that the amount of cash as shown by the 

 easli book, easli journal or Cash account is equal to the 

 amount under one's control. The Cash account balance, 

 after posting, should equal the amount of cash in the 

 checking account at the bank, plus the amount in one's 

 pursr. plus the amount anywhere about the premi 



The calculation made in verifying the cash balance 

 usually assumes this form: 



Balance in "X" Bank, checking account June 30, 1916, per 



check stub $1,380 



Cash on premises 13 



Balance in my possession per Cash account, June 30, 1916 . . 



(Dr. $3,284 

 (See Illustration 23) 4 Cr. 1,891 



$1,393 



Reconciling the Checking Account. In speaking of a 

 checking account, one does not imply that there is an 

 account in the ledger called "checking account." He 

 means merely the record kept on the premises usually in 

 the form of check stubs to show from time to time how 

 much is left in the bank available for use. The balance 

 on the check stubs on a given date presumably shows the 



