Which of the following lists the correct three steps for correcting an amount posted to an incorrect column in the accounting records?

• A. Draw a line through the incorrect amount, write the correct amount above, and recalculate the totals.
• B. Erase the incorrect amount, write the correct amount, and notify the supervisor.
• C. Draw a line through the entire entry, write the correct entry on the next line, and initial the correction.
• D. Draw a line through the incorrect amount, write the correct amount in the correct column, and recalculate the account balance.

Answer: (D)

Verified step by step guidance

1. Step 1: Understand the problem by identifying the correct procedure for correcting an amount posted to an incorrect column in the accounting records. This involves ensuring accuracy and maintaining a clear audit trail.
2. Step 2: Recognize that the correct procedure involves drawing a line through the incorrect amount to indicate that it is no longer valid, rather than erasing it, which could compromise the integrity of the records.
3. Step 3: Write the correct amount above or in the correct column to ensure the correction is visible and properly documented. This step ensures clarity and transparency in the accounting records.
4. Step 4: Recalculate the account balance to reflect the corrected amount. This ensures that the totals are accurate and consistent with the updated information.
5. Step 5: Review the correction to ensure it adheres to accounting standards and practices, and verify that the updated records are accurate and complete.