Complete reversal of entries
A complete reversal of entries records the debit and credit for a transaction on the opposite sides from those required. Total debits and credits can still agree. For a 100 cash sale recorded backwards, debit cash and credit revenue by 200 to reverse the wrong 100 and establish the correct 100.
Worked example
A cash sale is incorrectly recorded by crediting cash and debiting revenue.
Common mistake
Correcting the reversal with only the original amount on each side; reversing the error and recording the right entry requires twice that amount.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | F1 | Direct | July 2027–August 2028 |
| ACCA | FA | Direct | September 2026–June 2027 |
| ACCA | K1 | Direct | July 2027–August 2028 |
| FIA | FFA | Direct | September 2026–June 2027 |
Related terms
Also called: reversal error