112 FARM ACCOUNTING 



the Cash account is made up of the balance per check 

 stubs plus cash on the premises. The balance per check 

 stubs is verified by comparing it with the balance per the 

 bank pass book. If the only difference between the pass 

 book balance and the check stub balance is caused by 

 checks outstanding, no further steps in the verification are 

 necessary. If some of the difference is caused by errors 

 on the check stubs, such errors should be traced into the 

 book of original entry and ledger and all corrections made. 



ILLUSTRATIVE PROBLEMS 



1. Using the transactions of Frank Rodgers given under Illus- 

 trative Problem 2 of Chapter IV, 



(a) make journal entries, 



(b) post them to the ledger, 1 



(c) take a trial balance at the close of the year, 



(<1) perform similar operations using the transactions of 

 problem .{, Chapter IV, posting to the same ledger accounts used 

 in (b) above when possible. 



2. With the same sets of transactions 



(a) make cash book entries for all cash transactions, and sim- 

 ple journal entries for the others. 

 - (b) post to the ledger, 1 



(c) take a trial balance at the close of each year. Complete 

 the cash book entries, posting and trial balance of transactions 

 of problem 2, Chapter IV, before beginning entries for transac- 

 tions of problem 3, Chapter IV. 



3. Using the same transactions again, 



(a) make entries in a cash journal, 



(b) post them, 1 



(c) take a trial balance at the close of each year. As in prob- 



1 Obviously, the ledgers in problems 1, 2 and 3 of Illustrative 

 Problems, Chapter V, are not to be the same ones used in the problems 

 referred to in Chapter IV. They are to be different ledgers; but are 

 to be used for comparison after they are finished. 



