Log in

View Full Version : Correcting entries


sweetprincess4
Mar 20, 2007, 10:58 PM
Which accounts would I use to correct an entry, where a bill was posted as being paid and later it was realized that the bill was paid with the owner's personal money?

CaptainForest
Mar 21, 2007, 02:16 PM
The JE that was done:
Dr. AP – Company 100
Cr. Cash 100

What should have been done:
Dr. AP – Company 100
Cr. AP – Owner 100

What needs to be done:
Dr. Cash 100
Cr. AP – Owner 100

When you pay the owner his money,
Dr. AP – Owner 100
Cr. Cash 100

If you just go and pay him the cash today, you don't really even need a journal entry since the journal entry has already been made.