Accounting – 3.2 Correction of errors | e-Consult
3.2 Correction of errors (1 questions)
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Journal Entry: Correcting the incorrect depreciation expense
| Date: 20th March 2023 | Account Debited: Depreciation Expense | Amount: £50 |
| Account Credited: Accumulated Depreciation | Amount: £50 |
Explanation: The depreciation expense was overstated by £50 (£300 - £250). To correct this, the Depreciation Expense account is debited to reduce the expense, and the Accumulated Depreciation account is credited to reduce the accumulated depreciation balance.