Putting it right: who to tell
Correct an error the proper way, know when a correction needs approval, and know who to tell when something looks deliberate.
Task 1Correcting an error properly4 questions
An entry in the books is never rubbed out or overwritten. A mistake is corrected with a new entry in the journal, so that the record of what happened stays whole.
The journal carries a narrative: a short note of what was wrong and why it is being changed.
In July Priya finds that the payment of £512 to the pension provider was debited to Wages expense. It should have been debited to the Pension account, where the amount was owed.
Task 2Within your authority, or not3 questions
Task 3If it looks deliberate2 questions