When an error in journalizing is discovered after posting, which of the following is the correct procedure to correct the error?

• A. Make a correcting entry in the journal to fix the error.
• B. Erase the original entry and record the correct one.
• C. Reverse the entire set of journal entries for the period.
• D. Ignore the error if it is not material.

Answer: (A)

Verified step by step guidance

1. Understand the nature of the error: Determine what the error is and how it impacts the accounts involved. Errors can include incorrect amounts, wrong accounts, or improper classification.
2. Identify the accounts affected: Analyze the original journal entry to identify which accounts were debited and credited incorrectly.
3. Prepare a correcting journal entry: Create a new journal entry that reverses the incorrect portion of the original entry and records the correct information. For example, if the wrong account was credited, debit the incorrect account and credit the correct account.
4. Post the correcting entry: Post the correcting journal entry to the ledger accounts to ensure the financial records are accurate.
5. Verify the correction: Review the updated ledger and trial balance to confirm that the error has been properly corrected and the accounts are now accurate.