Question

IF I accidentally record an entry twice for example ( Dr expanse and CR cash) or ( DR sells revenue CR account receiveable) based on these two examples briefly describe how a reversing journal entry can correct the wrong entry?

Answer 1

1]	For Dr Expense and Cr Cash
	In this case the entry is correctly made, but made
	twice.
	The rectification would involve reversing
	one of the entries by making the following
	entry:
	Dr cash and Cr Expense
	This would cancel the effect of the second entry.
2]	For Dr Sales revnue and Cr Accounts receivable
	Here, the entry is made once. But, instead of
	debiting accounts receivable and crediting sales
	the opposite was done.
	The rectification would required annulling the
	and entry and then making the correct entry.
	The amount of the rectification entry would be
	twice the amount of the first [wrong] entry.
	When, twice the amount is entered it will correct
	the wrong entry and effect the required correct
	entry.