🩺 Correcting Entries Doctor

You can't erase ink or delete posted ledger lines! When a transaction is recorded improperly, accountants craft a Correcting Journal Entry. Diagnose the mistake and prescribe the exact ledger fix!

Lesson: Correcting Entries

Under GAAP, once an entry is posted, it becomes part of the permanent audit trail. Erasing or backdating is an audit violation.

Diagnostic Step	Question to Ask	Required Action
1. Compare Entries	What accounts should have been debited/credited vs. what was posted?	Identify the accounts that are fine vs. corrupted.
2. Reverse Wrong Side	Which account was mistakenly increased?	Post to the opposite side to cancel it out.
3. Introduce Right Side	Which account was omitted entirely?	Post to its proper debit/credit side.
4. Avoid Touching Cash	Did cash actually move in the correct amount?	If the cash amount was correct, do not touch Cash in the correcting entry!

🩺 Correcting Entries Doctor

Ledger Healed!

Lesson: Correcting Entries