Correcting errors using the journal and clearing the suspense account.
Correcting errors
Errors are corrected through the journal (with a narrative). The method depends on whether the error affected the trial balance.
- Errors not affecting the trial balance (omission, commission, principle, original entry, reversal, compensating) → corrected by a journal entry moving the figure to the right place.
- Errors affecting the trial balance (one-sided/unequal entries) → corrected against the suspense account.
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