I n t e r a c t I v e t e X t foundations in Accountancy/ acca financial accounting (ffa/FA) bpp learning Media is an acca approved Content Provider

 EXAM FOCUS POINT 

As already indicated, in the exam you are often required to select answers in the form of journal 

entries. 

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CHAPTER 16  

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  CORRECTION OF ERRORS 

 

279 

For example, a bookkeeper accidentally posts a bill for $40 to the local taxes account instead of to the 

electricity account. A trial balance is drawn up, and total debits are $40,000 and total credits are 

$40,000. A journal entry is made to correct the misposting error as follows. 

1.7.20X7 

DEBIT Electricity 

account 

$40 

CREDIT 

Local taxes account 

 

$40

To correct a misposting of $40 from the local taxes account to electricity account. 

After the journal has been posted, total debits will still be $40,000 and total credits will be $40,000. 

Total debits and totals credits are still equal. 

Now suppose that, because of some error which has not yet been detected, total debits were originally 

$40,000 but total credits were $39,900. If the same journal correcting the $40 is put through, total 

debits will remain $40,000 and total credits will remain $39,900. Total debits were different by $100