Home For AAT student members AQ 2016 Foundation Certificate in accounting Bookkeeping Controls

Error of principle correction

DannyT90DannyT90 Surrey AAT Student, AATQB Posts: 159
Am I right in saying that if an error of principle has occurred then as the bank transaction is correct, you don't have to remove that part of the problem?
For example if an Asset account is used instead of an expense account, then you only change them two accounts? I don't have to remove the bank part aswell.


  • BertieBertie West Midlands Registered Posts: 376
    If you have; Dr Insurance 100 Cr Bank 100 in the books, yet the expense should have landed into the Electricity a/c.

    Dr Electricity 100 Cr Insurance 100.

  • DannyT90DannyT90 Surrey AAT Student, AATQB Posts: 159
    That's what I thought but in the AAT study support section, there's real life scenarios tutorial and when they correct this sort of issue they remove the bank transaction too, which I thought was unnecessary.
  • Mike WebsterMike Webster Just Joined Cardiff and ValeRegistered, Tutor Posts: 199
    It may be 'unnecessary' but you should reverse the original error and then post the correct entries. This provide a much clearer audit trail should any queries arise later on.
    Michael JH Webster AATQB FMAAT
  • DannyT90DannyT90 Surrey AAT Student, AATQB Posts: 159
    Even if half of the original error wasn't wrong?
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