We all make mistakes sometimes. Cases of filling out the balance sheet are no exception. So, inaccuracies can be made due to inattention, as a result of a malfunction of computer technology, or due to incomplete information. Errors can be local (with distortion of information in one accounting register) or transitory, when the error is automatically recorded in several accounting registers. There are several ways to correct accounting inaccuracies.
Instructions
Step 1
Use the corrective method to correct errors in the balance sheet. Cross out the incorrect text or amount and write the corrected value above it. Strikethrough must be done with a single stroke so that the error is easily readable if necessary. Even if the inaccuracy concerns one digit, the entire amount in the line must be crossed out in full.
Step 2
When making corrections, indicate the date of the correction, which is confirmed by the signature of the person who performed this action. The corrective method is suitable for correcting errors such as misspellings, incorrect counting of totals, or making an entry in the wrong ledger. You can make corrections using this method only if the report has not yet been submitted.
Step 3
Make records of additional postings if the amount indicated in the ledger is less than the real one, but at the same time the correspondence of the accounts was carried out correctly, using less values than required. Make a second accounting entry with a similar correspondence of accounts for an amount that will correct the error.
Step 4
Use the reversal method with reversal entries to correct errors. This method is suitable for correcting inaccuracies in the correspondence of invoices or in the case of reflecting an amount greater than that recorded in the business transaction. When reversing, it is necessary to repeat the made erroneous entry in red ink, after which the equalization is made to zero.
Step 5
Enter the correct entry in the usual way, which will treat the revised new entry as the original entry. This method is suitable for correcting errors for accounting totals and reporting.
Step 6
Issue a certificate indicating the erroneous entry, if the balance report has already been submitted. In this case, it is necessary to correct errors when compiling accounting records for the next reporting period.
