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Wrong entries are fixed by overwriting or deleting the original voucher, leaving no clear record of what changed and why.
Correct by a new entry: reverse to cancel the whole entry, rectify to fix only the wrong part, and delete only as a last resort; in a closed period, correct in the current period with a note.
Correction vouchers with a narration citing the original voucher number and date; lock closed periods; restrict delete rights.
Original and correcting entries both visible, ledgers correct, and an audit trail that explains each change.
A wrong accounting entry should be corrected by a new entry, not by erasing the old one. A reversal cancels the original in full. A rectification entry fixes only the part that was wrong. Deletion is a last resort, and in company books it still leaves a trace in the edit log.
Error types and how each is corrected
| Error type | Example | Correcting entry | Did it break the trial balance? |
|---|---|---|---|
| Omission | ₹12,000 telephone bill not entered | Pass the missing entry now | No |
| Wrong account | Repairs debited to Furniture | Dr correct account, Cr wrong account | No |
| Wrong amount, both sides | ₹4,500 entered as ₹5,400 | Pass the ₹900 difference the other way | No |
| Wrong side | Customer credited instead of debited | Pass double the amount on the correct side | Usually only in manual or one-sided postings |
| Duplicate posting | Same bill entered twice | Reverse the duplicate | No |
Most errors keep the trial balance tallying. That is why they are found later, in reviews and reconciliations, not by the trial balance itself.
Worked example: ₹18,500 of repairs debited to Furniture
On 6 October, a bill of ₹18,500 for repairing office chairs is entered as Dr Furniture ₹18,500, Cr Supplier ₹18,500. On 9 October, the reviewer spots that repairs are a revenue expense, not an asset.
Rectification entry on 9 October:
| Account | Debit | Credit |
|---|---|---|
| Repairs and Maintenance | ₹18,500 | |
| Furniture | ₹18,500 |
Narration: “Being repairs bill of 6 October wrongly debited to Furniture, now transferred to Repairs.”
Effect on each ledger:
- Furniture: the wrong debit of ₹18,500 is cancelled, so the asset is back to its true value. No depreciation is charged on the repair.
- Repairs and Maintenance: increases by ₹18,500, so profit for the period falls by ₹18,500.
- Supplier: untouched, still ₹18,500 payable, because that part was right.
The alternative is a full reversal (Dr Supplier, Cr Furniture ₹18,500) followed by a fresh correct entry (Dr Repairs, Cr Supplier ₹18,500). It gives the same result in two entries, and is useful when several parts of the entry were wrong.
When should you reverse and re-enter, and when pass a rectification entry?
Use a rectification entry when:
- Only one part is wrong, such as the account head.
- The supplier, customer and amount are correct.
Use a reversal and re-entry when:
- Several parts are wrong: party, amount, date and GST.
- The original is a document such as a sales invoice, where you should issue a credit note rather than journal around it.
- Software reports, such as GST or TDS, depend on the original voucher type.
Use deletion only when an entry was made by mistake minutes ago, has not been reported, reconciled or shared, and your policy allows it.
Why should an error found after the month is locked be corrected with a current-period entry?
Once a month is closed, its figures have been used: the bank has been reconciled, the GST return may be filed, and management has seen the results. If you go back and alter a voucher in that month, all of those become silently wrong.
Instead, pass the correction in the current open period, with a narration that names the original voucher number and date. The closed month stays as reported, the current month carries the fix, and anyone reading the books can see both. For significant errors from an earlier financial year, take your CA’s or auditor’s advice on presentation.
Since 1 April 2023, Indian companies must use accounting software with an audit trail that records every alteration and deletion. Editing an old voucher no longer hides anything; it just makes the history harder to read. A correcting entry tells the story plainly.