Correcting Journals

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Shezzy
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Joined: 18 Jul 2022, 16:53

Correcting Journals

Post by Shezzy »

Hey guys,

If say company A, when recognizing an expense only debited the expense with X amount but did not credit Bank/trade payable. How do we complete the double entry? What's the correcting journal?
JRSB
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Re: Correcting Journals

Post by JRSB »

Well what was credited then? or are you asking how to account for a purchase?
Shezzy
Posts: 12
Joined: 18 Jul 2022, 16:53

Re: Correcting Journals

Post by Shezzy »

There was no credit. Meaning only one entry was made. How do we correct this using a journal?
JRSB
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Location: UK

Re: Correcting Journals

Post by JRSB »

well did the money come out the bank or is it still owed.. I don't really understand the situation to be honest with you
Shezzy
Posts: 12
Joined: 18 Jul 2022, 16:53

Re: Correcting Journals

Post by Shezzy »

Yes money came out of the bank.
When accounting for an expense incurred, the client debited expense rightfully but no credit entry was made.
JRSB
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Joined: 01 Mar 2020, 01:10
Location: UK

Re: Correcting Journals

Post by JRSB »

ok you talked about crediting bank in the first post. go with that
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Marek Muc
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Re: Correcting Journals

Post by Marek Muc »

I'm surprised that the bookkeeping software even allowed such an entry with only debit side. Or perhaps there was a credit side that was booked automatically, e.g. on some reconciliation account. I would double check that.
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