BOOKS OF ORIGINAL ENTRY 111 



some differences arise between the check stubs and the 

 bank pass book that cannot be accounted for by outstand- 

 ing checks. Such differences are usually caused by an 

 error in adding or subtracting amounts on the check stubs. 

 The procedure in finding such errors may be described 

 briefly as consisting of sorting the checks in numerical 

 or date order, comparing the amounts on the checks with 

 the amounts on the check stubs, and verifying all addi- 

 tions and subtractions on the check stubs. Before com- 

 pleting this part of the work, it is always desirable also 

 to compare each deposit recorded in the bank pass book 

 with the several deposits recorded on the check stubs. The 

 steps just enumerated in this paragraph should be suffi- 

 cient to find all differences between the balance shown by 

 the check stubs and the bank's balance, whether such dif- 

 ferences be caused by outstanding checks, errors in addi- 

 tion or subtraction, omission of a check or wrong entry 

 on the check stubs. 



Any errors found on the check stubs should be cor- 

 rected immediately and carried through to the last bal- 

 ance in current use. If the error is the entering of a 

 check for the wrong amount, such error will require cor- 

 rection in the cash journal and in the ledger accounts, if 

 posting has been done. If it is impossible to verify the 

 cash balance after getting the checking account recon- 

 ciled, it usually means that some currency has been paid 

 out or received without being entered in the cash journal. 

 When the amount of such difference is determined, an 

 entry should be made in the cash journal debiting Gen- 

 eral Expense and crediting Cash, if the cash is ' ' short, " 

 or debiting Cash and crediting Miscellaneous Income if 

 the cash is "over." Cash is said to be "short" when the 

 balance on hand and in the bank is less than the Cash ac- 

 count balance. 



In summary, then, it may be said that the balance per 



