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before the journal, and they are still different by $100 after the journal. 

This means that journals can only be used to correct errors which require both a credit and (an equal) 

debit adjustment. 

2.2 Example: journal entries 

Listed below are five errors which were used as examples earlier in this chapter. Write out the journal 

entries which would correct these errors. 

(a) 

A business receives an invoice for $250 from a supplier which was omitted from the books 

entirely. 

(b) 

Repairs worth $150 were incorrectly debited to the non-current asset (machinery) account instead 

of the repairs account. 

(c) 

The bookkeeper of a business reduces cash sales by $280 because they were not sure what the 

$280 represented. In fact, it was a withdrawal on account of profit. 

(d) 

Telephone expenses of $540 were incorrectly debited to the electricity account. 

(e) 

A page in the sales day book has been added up to $28,425 instead of $28,825. 

Solution

 

(a) DEBIT 

Purchases 

$250 

 

CREDIT 

Trade accounts payable 

 

$250 

 

A transaction previously omitted 

(b) DEBIT 

Repairs 

account 

$150 

 

CREDIT 

Non-current asset (machinery) a/c 

 

$150 

 

The correction of an error of principle: repairs costs incorrectly added to non-current asset costs 

(c) 

DEBIT 

Withdrawals on account 

$280 

 CREDIT Sales 

 $280 

 

An error of principle, in which sales were reduced to compensate for cash withdrawals not 

accounted for 

(d) DEBIT 

Telephone 

expenses 

$540 

 CREDIT Electricity 

expenses 

 $540 

 

Correction of an error of commission: telephone expenses wrongly charged to the 

electricity account 

(e) 

DEBIT 

Trade accounts receivable 

$400 

 CREDIT Sales 

 $400 

 

The correction of a casting error in the sales day book  

 

($28,825 – $28,425 = $400) 

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