Finding and

Correcting Errors
on a Work Sheet
Chapter 6, Section 4
Correcting Errors on Work
Sheet
 Errors may be discovered for the first time when
preparing a work sheet.

 The work sheet is a planning document not a permanent

record.
Check for Typical
Calculation Errors
 When two columns totals are not in
balance, find the difference.
 If the difference is 1, such as $.01,
$.10, $1.00, $10.00, etc.
 Error is most likely in addition. Add the
columns again.
 If the difference can be divided evenly
by 2.
 An amount may have been recorded in the
wrong column.
Check for Typical
Calculation Errors (cont.)
 If the difference can be divided evenly by 9.
 Error may be a transposition or slide
 Transposition – switching two numbers
 Example: 54 written as 45

 Slide – numbers are moved to the right or left

 Example: $12.00 recorded as $120.00

 If the difference is an omitted amount

 Look for an amount equal to the difference that may have not been
recorded or extended.
Checking for Errors in
Work Sheet
 Check for errors in Trial Balance column
 All balances copied correctly?
 All balances recorded in correct column?
 Check for errors in Adjustments column
 Debits and credits equal?
 Amount of adjustment correct?
 Recorded in correct column?
Checking for Errors in
Work Sheet
 Check for errors in Income Statement and Balance Sheet
columns.
 Amounts copied correctly when extended?
 Account balances extended to correct column?
 Net income or loss calculated correctly?
 Net income or loss recorded in correct column?
Correcting Errors in General Ledger Accounts
Entry posted to the wrong account

2 Correct entry

1 Incorrect entry
1. Draw a line through the entire incorrect entry. Recalculate the account
balance and correct the work sheet.
2. Record the posting in the correct account. Recalculate the account
balance, and correct the work sheet.
Correcting Errors in
General Ledger Accounts
 Correcting an incorrect amount
 Draw a line through incorrect amount; write correct
amount above; recalculate balance.
 Correct an amount posted to wrong column
 Draw a line through incorrect amount; record in correct
column; recalculate balance.
Checking for Errors in
General Journal Entries
 Debits equal credits for each entry?
 Each amount recorded in correct column?
 Account Title correct?
 All transactions recorded?
Assignments

 Work Together 6-4

 Using handouts given

 Recycling 6-1

 Mastery 6-5 (Textbook pg. 173-174)