How to correct errors in double entry records using the general journal and suspense account
When a bookkeeper makes a mistake in the accounts, they fix it by writing a correcting entry in the general journal. If the trial balance fails to balance, they park the difference in a temporary suspense account until they find and fix every error.
Real World
A sole trader's bookkeeper posts a £500 electricity bill to the rent account; the general journal corrects this with a debit to electricity and a credit to rent, leaving the suspense account untouched because the trial balance still balanced.
Exam Focus
Always write a narrative for each journal entry — examiners deduct marks if the explanation of the correction is missing.
Essay Framework
Use PEEL to structure every paragraph. Tap each step for guidance and an example.
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