Complete Reversal of Entries

Written by True Tamplin, BSc, CEPF®

Reviewed by Editorial Team

Updated on March 06, 2023


If a recorded transaction shows that both accounts have the correct debits and credits, the debit and credit entries in the ledger align and the trial balance remains unaffected.

Effect on Accounts

The debited account is credited and the credited account is debited.

Rectification Entry

The correct entry should have twice the amount to erase the effect of the incorrect entry and establish the correct entry.


Interest charged by the bank, $148, was entered in the debit side of the cash book and posted to the credit of the interest account.

Journal Rectification Entry

Complete Reversal of Entries FAQs

About the Author

True Tamplin, BSc, CEPF®

True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists.

True is a Certified Educator in Personal Finance (CEPF®), author of The Handy Financial Ratios Guide, a member of the Society for Advancing Business Editing and Writing, contributes to his financial education site, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University, where he received a bachelor of science in business and data analytics.

To learn more about True, visit his personal website, view his author profile on Amazon, or check out his speaker profile on the CFA Institute website.

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