Struggling with journal and correction of errors!

vickiilouise91 Registered Posts: 1
Most of the corrections I find easy to understand but one I'm really struggling to get my head around is the reversal of entries.
Its the only one I can't really seem to grasp.
Can anyone help me understand it a little easier?

Also, I'll be booking my first exam after doing the course distance learning and I'm wondering if anyone has any revision tips so it'll stick in my brain?

This is my first Level at AAT so it'll be my first ever AAT exam!


  • PeterC
    PeterC Registered, Tutor Posts: 245 Dedicated contributor 🦉
    Try looking at "Error Correction" (example 4) in the Encyclopaedia of Accounting
  • sdv
    sdv Registered Posts: 585 Epic contributor 🐘
    Reversal of entries = Debit entry posted as Credit entry OR Credit entry posted as Debit entry

    Debit=Credit therefore TB will balance; but there is an error in accounting.

    eg of an error: a Telephone expense of £30 posted as
    Debit Bank £30 - effect this has increased the assets instead of reducing it
    Credit Telephone £30 - effect reduce expenses instead of increasing it

    To Correct; - Post the entries TWICE
    Once to correct the Error
    Credit Bank £30 - Reverse the original entry to correct the error
    Debit Telephone £30 - Reverse the original entry to correct the error

    Second time to post the correct entry
    Credit Bank £30 - Reduce the asset - correct entry
    Debit Telephone £30 - Increase the expense - correct entry

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