Question

If an error is recorded in a journal entry,
(A) cancel the error by drawing a neat line through the error.
(B) correct the entry by writing the correct item above the canceled error.
(C) do not erase the incorrect item.
(D) all of these.

Answer 1

Answer:

(D) all of these.

Explanation:

Accounting errors do occur when making journal entries. In such a case, if one is spotted, corrections are usually done by an accounting staff who is more experience and they are done as soon as they are discovered to avoid forgetting. The errors should not be erased, however, the accountant draws a strikethrough on the erroneous entry and writes the correct one above the cancelled error. Therefore, all the choices given are correct.