Complete reversal of entries

Explanation

If a transaction is so recorded that the account to be debited is credited and the account to be credited is debited, both with the correct amount, the debit and credit entries in the ledger would be equal and the trial balance will remain unaffected.

Effect on accounts

The account to be debited is credited and the account to be credited is debited.

Rectification entry

The correct entry should be made with twice the amount to erase the effect of the incorrect entry and to establish the correct entry.

Example

Interest charged by the bank, $148, was entered in the debit side of the cash book and posted to the credit of Interest Account.