Correcting entries
Objective: Record correcting entries that fix only what was wrong.
Recommended first: Compound journal entries
Posted entries are not erased. They form the audit trail. Errors are fixed with a new correcting entry dated when the error is found.
- Wrong account: move the amount from the wrong account to the right one.
- Wrong amount: record only the difference.
- Omission: record the missing entry.
- Complete reversal: correct with twice the amount, or reverse and re-record.
A disciplined correction has three steps: write the entry that was recorded, write the entry that should have been recorded, and record the difference. This keeps corrections minimal and avoids touching accounts that were already right. Document the correction in the description, referencing the original entry, so a reviewer can follow the history.
Check your work
- What was recorded?
- What should have been recorded?
- Does the correction move only the difference?
A $200 electricity payment was debited to Rent Expense. Cash was right.
| Account | Debit | Credit |
|---|---|---|
| Utilities Expense | $200.00 | |
| Rent Expense | $200.00 |
Common mistakes
✗ Reversing the cash part too.
✓ Only correct the part that was wrong.
Guided practice
Use hints freely here.
Item 1 of 1
Correct a misposted expense
On Mar 20, 2026, Corner Bean Café's bookkeeper finds that a $200.00 electricity payment earlier this month was debited to Rent Expense by mistake. Record the correcting entry (do not reverse the cash).
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Independent practice
Try these without hints. Completing the lesson needs at least one independent item solved without revealing the answer.
Item 1 of 8
Correct a repair recorded as equipment
On Mar 22, 2026, FixRight Appliance Repair discovers that a $525.00 routine van repair was debited to Vehicles. It should have been an expense. Record the correction.
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References and provenance
- OpenStax, Principles of Accounting, Volume 1: Financial Accounting (accessed 2026-10-29)
Original lesson written for Bookkeeping Exercises (AI-assisted drafting). Calculations are verified by the platform's automated accounting tests. Not yet reviewed by a credentialed accountant. Updated 2026-10-29.