Syllabus Edition
First teaching 2025
First exams 2027
Error of Complete Reversal (Cambridge (CIE) IGCSE Accounting): Revision Note
Exam code: 0452 & 0985
Error of complete reversal
What is an error of complete reversal?
An error of complete reversal occurs when a transaction is entered into the wrong sides of both of the correct ledger accounts
The account that was debited should have been credited
The account that was credited should have been debited
The correct amount is included in the total for the debits and the total for the credits
The totals will therefore balance
How do I correct an error of complete reversal?
Double the value of the transaction
This is because you need to apply the transaction twice
Once to undo the error
Once to make the correct entries
Make the entries on the correct side
This will be the opposite side to where it was entered
Worked Example
On 1 March 2024, Ashika identified an error where goods sold to Kiha, for $200, were debited to the sales account and credited to Kiha’s account.
Prepare journal entries to correct the error. A narrative is required.
Answer:
The accounts currently look like:
Debit sales $200
Credit Kiha $200
The accounts should look like:
Debit Kiha $200
Credit sales $200
Fix the errors
An amount of $400 on the correct side of both accounts is needed to fix the error
Journal
Date | Details | Debit $ | Credit $ |
2024 Mar 1 |
Kiha |
400 | |
Sales | 400 | ||
Correction of error of complete reversal - credit sale of $200 entered on the wrong side of the accounts |
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