Complete Reversal of Entries

Correction of Errors

MS: Kesilapan Catatan Songsang · EN: Complete Reversal of Entries · ZH: 借贷颠倒错误

Meaning

A complete reversal of entries occurs when the account that should be debited is credited, and the account that should be credited is debited. Both entries are reversed, so the trial balance still balances and it is an error not affecting it. The correction uses double the original amount to cancel the error and record the correct entry.

Example

For example, cash of RM400 received from a debtor was wrongly recorded as Debit Debtor, Credit Cash. Correction: Debit Cash Account RM800, Credit Debtor Account RM800 (twice RM400).

Source: DSKP KSSM Prinsip Perakaunan Tingkatan 4

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