Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 28 - No. 34)
What is the journal entry for the correction of an error where $100 cash was debited to the wrong account when it should have been debited to Utilities Expense account?
Debit Utilities Expense $100; Credit Wrong Account $100
Debit Utilities Expense $100; Credit Cash $100
Debit Cash $100; Credit Utilities Expense $100
Debit Wrong Account $100; Credit Utilities Expense $100
Explanation
The correcting entry will debit the correct expense account and credit the wrongly debited account, correcting the error without affecting cash.
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