Appendix A: Examples of Transaction Postings
Accounts Payable Adjustments
Below are examples of Accounts Payable adjustments.
Example 1: Assume that a mistake was made when an invoice was entered and posted. The invoice amount for Office Supplies was understated by $175.00. An adjustment entry of $175.00 would create the following General Ledger entries.
| DR | CR |
|---|---|
| 175.00 | |
| DR | CR |
|---|---|
| 175.00 | |
Corrected: the printed manual shows the 175.00 on the credit side of Office Supplies. An understated invoice adds to both the expense and Accounts Payable, so the expense is a debit.
Example 2: Assume that you returned damaged goods (a computer cable) to your vendor valued at $150.00. An adjustment entry of -$150.00 would create the following General Ledger entries:
| DR | CR |
|---|---|
| 150.00 | |
| DR | CR |
|---|---|
| 150.00 | |
C o m p u t e r