The method for correcting an error depends on when and where the error is found:

• If the journal entry is wrong and has not yet been posted, draw a line through the incorrect item and write the correct information directly above it.

• If the journal entry is correct but the error occurred in posting, draw a line through the incorrect item in the ledger and write the correct information directly above it.

• If the journal entry is wrong and has already been posted, make a correcting entry. The correcting entry is posted to the general ledger. It is similar to any other posting except that it includes the words Correcting Entry in the Description column.