Journal entries Updated November 2026

Correcting entry

A correcting entry is a journal entry that fixes an error already posted. Either reverse the original entry in full and record the correct one, or post one entry for the difference. It carries a description referencing the original entry so the trail is clear, and it is dated in the open period.

Syntax

Method 1: reverse original + post correct. Method 2: post the difference only. Entry = Correct entry - Wrong entry

Part	What it is
`Wrong amount`	Post the difference to the same accounts
`Wrong account`	Move the amount: Dr correct account / Cr wrong account
`Duplicate`	Reverse one copy in full
`Memo`	Reference the original entry number and the reason

Examples

Supplies of 300 were debited to Equipment

Result: Dr Supplies Expense 300 / Cr Equipment 300

A 540 check to a vendor was recorded as 450 (Dr Accounts Payable 450 / Cr Cash 450)

Result: Difference method: Dr Accounts Payable 90 / Cr Cash 90

Same error, reversal method

Result: Reverse: Dr Cash 450 / Cr Accounts Payable 450, then record: Dr Accounts Payable 540 / Cr Cash 540. Net effect identical to the 90 entry.

Common mistakes

Editing or deleting the original transaction in a closed period: it changes reported figures and breaks the audit trail.
Correcting only the Cash side: every account touched by the error needs attention.
No explanation on the entry: six months later nobody will know why it exists; write the reason and the reference.

Practice Correcting entry

These drills check your answer on live data, free, no account needed.

Correcting a book errorClassify every line, enter both adjusted balances, then choose the journal entry the company must record for each item that affects its books.
Recorded twiceClassify every line, enter the correction for any error, then the adjusted bank and book balances.
Digits swapped in the booksClassify every line, enter the correction for any error, then the adjusted bank and book balances.

Questions

What is the difference between a correcting entry and an adjusting entry?

An adjusting entry records something that has not yet been recorded (accruals, depreciation). A correcting entry fixes something recorded wrongly.

When should I use a reversal instead of a difference entry?

When the error involves the wrong account or is confusing to explain. Reversing and re-recording is longer but easier to follow.

Book errorsA book error is a company mistake in recording cash: a check entered for the wrong amount or a deposit recorded twice. Adjust the book side and correct it.
Transposition errorA transposition error swaps two digits, such as 540 entered as 450. The difference is always divisible by 9, which makes it quick to spot in a reconciliation.
Check recorded twiceA check entered twice in the cash book understates cash by the duplicate amount. Add it back on the book side and reverse the duplicate; same for a deposit.
Bank reconciliation journal entriesThe journal entries that follow a bank reconciliation, one per book-side item: service charges, interest, NSF checks, notes collected, book errors.