6.3.2 Correcting Entry

Correcting entries are actually unnecessary when using the C/BOOKS Accounting System because the C/BOOKS Accounting System allows you to reopen a closed period and correct the actual entry in error. The correcting type of general journal entry is therefore provided for those users who for one reason or another do not wish to correct errors in the period in which they occurred.

The following screen with detail lines shows the general journal entry made to correct voucher vo8309-01. The voucher was entered into the system on 9/15/83 after receiving 10 widgets for $40.00. In the next period it was discovered that 12 widgets had been received and the amount owed was $48. Before the closing processes are run for period 10 this correcting entry is made.

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Notice that the debit amount of $8 equals the credit amount of $8. The first detail line debits the inventory product widgets for 2 units at $8.00, which in turn debits the Inventory controlling account in the general ledger for $8. The second detail line credits the voucher vo8309-01, for $8, which in turn credits the vendor account and then the Accounts Payable account in the General Ledger. You may have noticed that although widgets is debited for 2 units, the voucher is credited for 0 units. It is not necessary for the units to balance. Since units are not meaningful for the voucher, a zero is entered.