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?
Correcting Journals
Re: Correcting Journals
Well what was credited then? or are you asking how to account for a purchase?
Re: Correcting Journals
There was no credit. Meaning only one entry was made. How do we correct this using a journal?
Re: Correcting Journals
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
Re: Correcting Journals
Yes money came out of the bank.
When accounting for an expense incurred, the client debited expense rightfully but no credit entry was made.
When accounting for an expense incurred, the client debited expense rightfully but no credit entry was made.
Re: Correcting Journals
ok you talked about crediting bank in the first post. go with that
Re: Correcting Journals
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.