Posting a Wrong Amount to the Ledger

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Written by True Tamplin, BSc, CEPF®

Reviewed by Subject Matter Experts

Updated on April 27, 2023

Effect of Posting a Wrong Amount

If a wrong amount is posted to the ledger from a subsidiary book, the effect is confined to that account only in the ledger. The total of the relevant subsidiary book posted to the ledger will still be correct and, therefore, does not need rectifying.

Example

A credit note for $450 was issued to David. It was recorded correctly in the returns inwards book but posted to the Cr. of his personal account as $480.

It follows that the total of the returns inwards book will be correctly posted to the returns inwards account in the ledger, whereas David's personal account is over-credited by $30.

David's Rectification Entry For Wrong Amount Posted to the Ledger

An invoice for $1,380 issued to John was recorded correctly in the sales book but posted to the Dr. side of his personal account as $1,830.

It follows that the total of the sales book will be correctly posted to the ledger's sales account, whereas John's personal account is over-debited by $450.

John's Rectification Entry For Wrong Amount Posted to the Ledger

Posting a Wrong Amount to the Ledger FAQs

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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 or view his author profiles on Amazon, Nasdaq and Forbes.