LA GL - Journal Entry: To fix Check Transaction with Incorrect Accounts

When you have written a check and used an incorrect distribution account, you may correct this error with a Journal Entry.

When possible, use the date of the original transaction for the Journal Entry. Do not use the Transaction date if it falls in a closed Bank Reconciliation Period. Then, simply use the first date of the open Bank Reconciliation Period.

In the General Ledger, go into Individual Transactions.

If the Account you should have used was a Bank Account, you must use Journal Type CR in your new journal entry. If it should have been an different type of account, you may use a GJ entry. 

 

So, when the line item in the check is incorrect, and should have been another checking account, use a CR entry (Cash Reciepts) to Debit the correct Account and Credit the wrong account.

When the line item in the check is incorrrect, and should have been an expense account or a liability account, use a GJ (General Journal) entry to Credit the wrong account and to Debit the correct account.

If the check was written out of the wrong bank account, you should void the check. If you cannot void the check, create a journal entry of type CD (Cash Disbursements) which Debits the wrong account and which Credits the correct Account.

 

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