Accounting for IGCSE & O level - Accounting Procedures (Section 22 - No. 15)
An error resulted where the debits and credits for electricity expenses of £220 were reversed, how do you account for the error?
A credit entry for twice the amount of the error.
Debit the Electricity account for the amount by £220
Credit the debit balance on the account by £220
A debit entry for twice the amount of the error
Explanation
Debit entry must be made twice as the debits and credits have been reversed.
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