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April 15, 2021, 05:03:04 pm

Author Topic: Accounting - Correcting Entries  (Read 2629 times)  Share 

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Hale_Lora

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Accounting - Correcting Entries
« on: April 17, 2016, 07:34:39 pm »
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Please help!

1. A payment of wages of $505 was incorrectly recorded in the cash payments journal as a payment to creditor- N. Smythe for $550

2. A payment of wages $234 was incorrectly recorded as in the cash payments journal as $432.

How do I record these in the General Journal? Or should they not be recorded in it?


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Re: Accounting - Correcting Entries
« Reply #1 on: April 17, 2016, 07:43:29 pm »
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Accounting is one of my weakest subjects, but I'll give it a shot  :P

1. Correct entry: Debit wages $505, Credit bank $505
What was done instead which is incorrect: Debit creditors control $550, Credit bank $550
What must be done to fix the mistake (the answer): Debit wages $505, debit bank $45, credit creditors control $550

2. I don't think you completely typed out the question?

Hale_Lora

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Re: Accounting - Correcting Entries
« Reply #2 on: April 17, 2016, 08:14:45 pm »
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Oh, ok. I was getting confused because I thought I couldn't use 'bank' in the General Journal unless it is an commencing entry...?

Sorry, this is the full question I was given:
A payment for wages of $234 was incorrectly recorded in the cash payments journal as $432.

Basically, trying to figure out if the above correction occurs in the cash payment journal or the general journal?


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Re: Accounting - Correcting Entries
« Reply #3 on: April 17, 2016, 08:21:00 pm »
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Correcting entries are done in the General Journal. So in this case, as it is a correcting entry, we can use bank in the GJ.   :D

No worries, I'll give Q2 a shot!

2. Since it's a correcting entry, it will be recorded in the General Journal.
Correct entry: Debit wages $234, Credit bank $234
What was done incorrectly: Debit wages $432, Credit bank $432
To correct the mistake (ans): Debit bank $198, Credit wages $198

Hale_Lora

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Re: Accounting - Correcting Entries
« Reply #4 on: April 17, 2016, 08:29:17 pm »
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Gotchya! Thank you so much!!  :)

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Re: Accounting - Correcting Entries
« Reply #5 on: April 17, 2016, 08:47:49 pm »
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Anytime Hale_Lora!  ;D