What is the effect of the following error on profit of the year?
“Interest received of $400 was recorded DR Interest received, CR Cash at Bank”
DR Trade payable Dom, CR Trade payable Tom
DR Office equipment, CR Trade payable Dom
DR Trade payable Tom, CR Trade payable Dom
DR Trade payable Tom, CR Office equipment
Repairs to machinery were wrongly recorded in the machinery account. The correct journal entry to correct this error is ____________________.
An unacceptable way to correct for errors discovered in a business’ book of accounts is to
reverse the incorrect entry.
erase the incorrect entry
compare the incorrect entry with the correct entry and make a correcting entry to correct the accounts.
correct it immediately upon discovery