Question

1) You are one of the accountants for a landscaping service business. You notice a discrepancy between the general journal and the general ledger. How do you verify the dates and amounts in question? 2) A general ledger account provides a complete running history of the increases and decreases that affected the account during the accounting period. True or False?

Answer 1

1). General journal is referred to as books of accounts where every transaction is recorded of the business whether it is sales, purchase, expense, adjusting entries, etc. After posting to the general journal, each transaction is classified according to the account it pertains and posted to that account i.e. general ledger.
All the transactions are linked i.e. first posted to general journal and then in general ledger of individual accounts, hence in order to verify the dates and amounts, one should check the entries posted in general journal and also check the corresponding dual entry in general ledger account to which it affects and at which date and in amount. If there is a difference in the entry posted in general journal and general ledger, the discrepancy should be reported and corrected.

2). True. General ledger account shows all the transactions relating to that particular account be it increase or decrease during the accounting period.