Correcting errors

Question 1

Correction of entry in full

Answer 1

. Make opposite entries which cancels original posting
. Enter original entry correctly
WAGES DR CR BAL
5/7 CASH: staff wages 200 200 dr
12/7 CASH: cancel entry 5/7 200 —
12/7 CASH: staff wages 5/7 250 250 dr

CASH
5/7 WAGES: staff wages 250 250 cr

Question 2

Correcting by compensating entry

Answer 2

WAGES DR CR BAL
5/7 CASH: staff wages 200 200 dr
12/7 correction of error 50 250 dr

CASH
5/7 WAGES: staff wages 250 250 cr