Procedures for Correction of errors


Correction of errors

Errors committed in recording and posting should be corrected by means of another journal entry known as a correcting general journal entry.  In preparing correcting entries, the following procedure is helpful:

a)         analyze the wrong entry as it was actually recorded,

b)         determine the correct entry as it should have been recorded.

c)            prepare the correcting general journal entry which should cancel and correct the error made.

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