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It means that the entries are posted to the opposite side in each account, and maybe the figures are also wrongly posted.
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Which side of a receivables ledger control account is cash refund to customers?
If you are having to refund a customer money from an account receivable that means that 1. They overpaid on their account (or) 2. An entry error was made and they were over charged. For example 1. Say Customer X paid you $500 on their account but only owed you $50. The original entry is going to give their AR a (credit balance) of $450. Because AR is an account receivable it maintains a Debit balance. To correct this and your company plans on paying them cash back (issuing a check), you will Issue the check for $450 and credit your cash account and debit their AR account. This entry will not effect revenue as it was an over payment and not actually recorded as Income. If it's just an entry error, then simply correct it with an adjusting entry. Since the original entry is recorded as AR (debit) and Revenue (credit), reverse the entries for the adjustment amount noting why the adjusting entry was made. Since this was an entry error more than likely Income (revenue) was entered wrong as well.
What is book of original entry?
"Journal" is called as book of original entry because at the occurance of any business transaction, entry is first of all recorded in journal.
What is another term for the book of original entry?
prime entry** good luck
What transactions are initially recorded in?
Money!
Is a petty cash voucher a book of original entry?
yes
Name two type of error which do not affect the agreement of a trial balance?
error of omission and error of original entry
Errors that are not disclosed by trial balance?
compensating errors error of omission error of commission error of principles complete reversal of entries error of original entry
What is the 5 types of errors that do not affect the balancing of trial balance?
1 error of omission 2 error of compensation 3 error of original entry 4 error of principle 5 error of commission
What is error of original entry?
You enter the wrong amount You confuse debit and credit You debit or credit wrong account?
Which side of a receivables ledger control account is cash refund to customers?
If you are having to refund a customer money from an account receivable that means that 1. They overpaid on their account (or) 2. An entry error was made and they were over charged. For example 1. Say Customer X paid you $500 on their account but only owed you $50. The original entry is going to give their AR a (credit balance) of $450. Because AR is an account receivable it maintains a Debit balance. To correct this and your company plans on paying them cash back (issuing a check), you will Issue the check for $450 and credit your cash account and debit their AR account. This entry will not effect revenue as it was an over payment and not actually recorded as Income. If it's just an entry error, then simply correct it with an adjusting entry. Since the original entry is recorded as AR (debit) and Revenue (credit), reverse the entries for the adjustment amount noting why the adjusting entry was made. Since this was an entry error more than likely Income (revenue) was entered wrong as well.
How do you correct an error made in a nursing entry?
You would draw a single line through the entry, such as entry. You would then initial it and write mistaken entry. NEVER label as error. The end result should look like this: entry mistaken entry, J.D.
Why is ledger called a book of final entry?
Because it is prepared from the journal which is the book of "original entry".
How do you reverse a journal entry?
Change the signs on the original entry, ie. change the Debit to credit and vice-versa then re-post the journal.
What is book of original entry?
"Journal" is called as book of original entry because at the occurance of any business transaction, entry is first of all recorded in journal.
How do you enter a dishonoured cheque in tally?
Reverse Entry to be passed for the original Entry
What is another term for the book of original entry?
prime entry** good luck
What is experimental error and an example of what this error is?
An experimental error is is
