Which of the following is the correct sequence of steps for preparing a check stub in the accounting process?

• A. Update the balance, enter the date, write the check number, record the payee, and enter the amount.
• B. Record the payee, update the balance, write the check number, enter the date, and enter the amount.
• C. Write the check number, enter the amount, record the payee, update the balance, and enter the date.
• D. Enter the date, write the check number, record the payee, enter the amount, and update the balance.

Answer: (D)

Verified step by step guidance

1. Step 1: Understand the purpose of a check stub. A check stub is used to record details of a check transaction, including the date, check number, payee, amount, and updated balance. It serves as a record for both the payer and the accounting process.
2. Step 2: Begin by entering the date. The date is crucial as it indicates when the transaction occurred and helps maintain chronological order in the accounting records.
3. Step 3: Write the check number. The check number is a unique identifier for the check and is essential for tracking and reconciling transactions.
4. Step 4: Record the payee. The payee is the entity or individual receiving the payment. This information ensures clarity on who the payment was made to.
5. Step 5: Enter the amount and update the balance. The amount represents the payment made, and updating the balance reflects the new account balance after the transaction.