CengageNOW: Correcting Mistakes in General Ledger (CLGL)

In a prior video, we demonstrated how a
Cengage learning general ledger problem is graded inside the Cengage Now
Learning Management system. In this video, you will learn how to go back
and correct errors before submitting the problem for a recorded grade when the check my
work self-grading feature is enabled. In our prior example, we had two accounts
in error, cash and sales commissions, indicated by a red X in the
grading detail report. Since the self-grading check my work option
was enabled by default, we can now go back and try to determine the cause of the errors. Here are some hands for helping
students locate the source of errors. Since many of the transactions
affect the cash account, this is usually not the best
place to start looking for errors. Instead look at the other side of the
transaction; in this case, sales commissions. Display or print out the general
journal or special journal report, depending on the focus of the problem. Scanning down, I see just one
transaction for sales commissions. The value is correct but since
this was an increase in cash, I have reversed the transaction in error. Alternatively, display the general
ledger report; in this report, you can easily restrict the
display to just one account, the sales commissions account, in this case. This will show me all of the transactions
that affected just this account, at least one of them must be incorrect
and there is only one in this problem. I can easily correct this error by
going back to the journal entry task and making the correction, debiting
cash and crediting sales commissions. When I now go back to check my
work, I get a perfect score. [ Silence ] If the problem focuses on adjusting and
closing entries, remember that all revenue and expense accounts are closed to zero,
even if they were in error before closing, which makes the error harder
to find after closing. Remember here, however, that every adjusting
entry involves a revenue or expense account on one side of the transaction and an asset
or liability account on the other side of the transaction so focus on the asset or
liability accounts first if they are in error. Most likely if you get those accounts
correct in the adjusting entries, the revenue or expense accounts will follow. If the cause of the error is still
not apparent, try these tips; quickly scan the reference column of the journal
report for missing transaction references. For instance, you should be able to determine
if all of the check transactions are there and in sequence, if you have numbered them. Look for a correct amount posted to the
wrong account in the general ledger report. If the difference between the correct
and incorrect amounts is divisible by 9, the student has likely reversed
digits in an entered number. Finally, if the problem involves closing
entries, first delete all of the journal entries with a closing entry reference,
then make your corrections and then perform the automated closing again.

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