As a full-time bookkeeper responsible for correcting errors in accounts, I should investigate and identify some details before making any reversal entries. For instance, the type of error that was made by the co-worker, the number of accounting periods affected by the error, and the reasons for the occurrence of the error. I should also determine the accounts that require to be corrected and the amount to be rectified. Correction of accounting errors affects many accounts.
After determining that there should be a correction made, I will make journal entries to correct the error and then credit the cash account and debit the sales account. The error will require an adjusting entry in the accounts. This adjustment transaction will decrease the cash account and decrease the sales account as well. When the cash receipt was recorded for the second time, the cash account was debited, which increased the amount in the cash account and on the other hand, the sales account increased in amount too. Therefore, a reversal entry will require the cash account to be credited and consequently, a decrease in the cash account.
Delegate your assignment to our experts and they will do the rest.
Dr Cash Account Cr
Sales XX
Dr Sales Account Cr
Cash XX
I would not accept dinner to correct the error. This is because correcting errors is my work as a full-time bookkeeper, and since I am paid by the organization to do the job, I do not require favors to do the work. Moreover, accepting the dinner would be like taking a bribe to cover up a mistake, and that is against the ethics of the accounting profession. Therefore, I would carry out the necessary investigations and commence to correct the fundamental errors as required.
