Ads end in 20 seconds
This content is free thanks to our sponsors
Sponsored Ad – I may earn a commission if you click and buy
Accounting
Correcting Entry
A journal entry made to fix a mistake that was already recorded in a previous period.
Correcting entries are only used when the error is from a past period that's already closed. For current-period mistakes, you just record the right entry normally.It's like going back and erasing the wrong answer on last week's homework and writing the right one without messing up the rest of the page.
Real world: You recorded a $500 repair as an equipment purchase last month, so you now make a correcting entry to move it to the repair expense account.
💡 Catch mistakes early so you can just fix them normally — correcting entries are only for when the books have already moved on.