General Ledger Original

Cash Account:

Beginning Balance: $361,363.28

Debits: $184,729.89

Credits: $238,026.55

Ending balance: $308,339.62

General Ledger Mistake

Cash Account:

Beginning Balance: $358,136.28

Debits: $188,229.89

Credits: $238,026.55

Ending Balance: $308,339.62

Refer to the GLs above to answer the question below.

Note* The companys accounting method is cash basis.

The General Ledger listed first is correct. By mistake an accountant deleted a transaction and caused a reduction in the beginning balance (see GL revised beginning balance). The deleted transaction was for a $3,500 expense check written in March & voided in May. The accountant attempted to fix the mistake by debiting the cash account and crediting the expense account for the open period (May). Unfortunately this did not fix the beginning bank balance discrepancy and only increased the debits for the cash account.

How should the 2^nd General Ledger be revised to reflect the original General Ledger exactly? What specific accounts should be debited and credited to correct the beginning balance? What accounts should be debited and credited so that the debits column will match the original General Ledger? The ending balance needs to remain the same.

Please provide detail in your answer.