Why this is mistaken
Trace the actual subsequent accounting. Some errors reverse, some amortize only partly, and some persist until settlement or correction. A schedule should show later entries caused by the wrong balance rather than assume a textbook reversal.
Where to watch
When this mistake may appear
- An error carries into later opening balances.
Check your work
Your work may contain this mistake if:
- Inserts an unsupported next-year reversal to make cumulative income zero.