PSA L&P - Journal Entry: How to move an amount from one account to another account

How to move an amount from one account to another account

If the software will not allow editing of the original transaction, use a journal entry to move an amount from one account to another. Look at the original entry to determine if the amount to be moved is a debit or a credit. Use the opposite type in the journal entry to move the amount.

Example: The Office Supplies expense account was debited for $50.00 when the Postage expense account should have been debited instead.

In the Journal Entry to move the expense from Office Supplies, credit Office Supplies for $50.00 and debit Postage for the same amount. 

Account Balances prior to correction


 

Journal Entry

 

Account balances after the journal entry


 

 


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Typical Account Balances

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