Specifications

6  Lesson 4 Computer Tutorial 3
Alternative A: Make an adjusting entry
In this alternative, $10,000 is moved from Mortgage payable to Notes payable, leaving the
other lines in the original batch unaffected.
Alternative B: Reverse the entry and enter the correct one
In this alternative, the first entry reverses the entire entry previously entered and the second
entry provides the correct transaction lines.
Land 30,000
Building 57,000
GST payable 6,090
Mortgage payable 77,000
Bank 16,090
Land 30,000
Building 57,000
GST payable 6,090
Mortgage payable 67,000
Notes payable 10,000
Bank 16,090
Both alternatives have their advantages: Alternative A provides a simple way to arrive at the
correct net balances, whereas Alternative B provides a more complete and detailed audit trail.
TOPIC 4.6
Self-testing questions
1. Why should you back up your general ledger before posting transaction batches?
2. What would happen to the posting process if one of the unposted transaction entries
in a batch contained an error?
3. Can you edit the transactions in a transaction batch that has been posted?
4. After posting all open transaction batches to your general ledger, you discover that
the amount debited against Accounts receivable and credited against Revenue has
been overstated by $500. How would you correct this error? The original amount
posted to these accounts was $1,800.
Exit Accpac if you are not planning on proceeding to Lesson 5 now.