- This topic has 3 replies, 2 voices, and was last updated 2 years ago by
.
- Posts
Is it true:
(1) Correcting entries are those double entries which are made by the accountant at the year-end to correct the original double entry wrongly made by the bookkeeper?
(2) For eg when the business sold goods on credit we should debit the receivable but the bookkeeper wrongly debits the cash account. Therefore we need to correct it by crediting the cash and debiting the receivable account?
(3) The correcting entry will be made in nominal ledgers only?
(4) It is called correction of errors (True?) Please also state which chapter of the notes is on this topic.
1. Although that is the most likely time that errors are discovered and corrected (certainly in the exam) they should be corrected whenever they are discovered.
2. Correct
3. In practice all errors should be corrected whichever of the books they occur in. However it is only in the nominal/general ledger that errors need to be corrected by way of double entry.
4. You can call it whatever you like. Errors such as the one you describe in (2) obviously do not need a lecture.The types of questions in exams that do warrant a lecture are covered in Chapter 19 (and the lectures working through this chapter). (However the lectures should sensibly be watched in chapter order – they form a complete course – rather than picking chapters in isolation!)
1) Correcting entries are actually the adjusting entries that will be adjusted or corrected into our nominal ledgers at the year-end?
2) I’ve seen some companies prefer to make unadjusted trial balance and then they do all the adjustments at the year-end (most probably) to prepare adjusted trial balance. BUT you prefer to make adjusting entries directly into the general/nominal ledgers and then make adjusted trial balance. Can we do both ways?
Thanks you do much for your kind help always:)
- The topic ‘correcting entries’ is closed to new replies.