If a customer journal is processed instead of a invoice to raise a monthly fee, such as school fees March for instance in the cash of a school, which would be an income, what is the correct contra account to use? Would it be 1000/000 which is Fee income or would it be the opening balance customer control account? The contra account has been set up as the Opening balance Customer control account and things do not look correct.
How would one correct this using a journal if the incorrect contra account has been used? Is it correct to reverse the total amount or will each amount that has gone through the wrong contra account have to be re-entered individually after having been reversed? There is no tax applicable.