Basic Knowledge Of Accounting: The Scarlet Letter Is More Correct.

Also known as the "red letter correction law", "deficit rush law" and so on.

This method is suitable for:

(1) due to errors in the accounts receivable and the accounts receivable in the bookkeeping receipts;

(2) the accounting record is incorrect due to the amount listed in the voucher is greater than the amount payable (the account should be borrowed and payable).

When we find that the first wrong account is corrected, we should use the scarlet letter to correct it. First we use the scarlet letter (the sum of the scarlet letter) to fill up an accounting voucher which is exactly the same as the original erroneous bookkeeping certificate. In the "column" column, we write out the number of "write off the wrong account" and the number and date of the error certificate, and then fill in a correct account voucher with blue words.

The above second kinds of false accounts were found to be adopted.