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. 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. 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.Effect of Posting a Wrong Amount
Example
Posting a Wrong Amount to the Ledger FAQs
Yes, provided it is recorded correctly in one of the subsidiary books. After checking and correct postings elsewhere, just delete the incorrect total of this account.
It will be an incorrect total of the nominal account and is likely to be corrected.
If it has been posted correctly in one subsidiary book but incorrectly in another, all is not lost. Just delete the incorrect total from this account. If it has been posted incorrectly in both subsidiary books, all is still not lost. Just delete the total from this account and make a note of the incorrect posting.
The best thing to do is just to explain clearly in your management accounts why there was a difference between the total of this account and the true figure.
Before you do anything, just check all surrounding postings and finally double-check that the error has been found. Then delete the wrong total from this account.
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.
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