Question

Trudie Lyn calls you because a bill is still showing due but she knows she paid it and her bank and credit cards are all reconciled. You determined she recorded an expense instead of paying the bill through bill payment. What steps would you take to repair this issue?

Answer 1

a bill is still showing due

means already Expenditure & Due entry posted earlier like below ( Assumed $ 1.00 )

Expenditure Account Dr     $ 1.00

         To Creditor Account       $ 1.00

(Being Expenditure incurred on Credit )

but she knows she paid it and her bank and credit cards are all reconciled.

Actually she have make an entry as below.

Creditor Account   Dr $ 1.00

     To Cash Account (or Bank Account ) $ 1.00

( Being amount paid to creditor against to the bill )

she recorded an expense instead of paying the bill through bill payment.

But she make an entry as below

Expenditure Account   Dr $ 1.00

     To Cash Account (or Bank Account ) $ 1.00

( Being Expense amount paid against to the bill )

Rectification entry for the above mistake to be posted as below

Creditor Account Dr            $ 1.00

      To Expenditure Account            $ 1.00

( Being Expenditure accounted twice is now rectified )