Skip to content

CA Final · Financial Reporting · Accounting and Technology

Meenakshi Pharma Ltd. is implementing a blockchain-based supply chain ledger shared with its distributors. Transactions recorded on the ledger cannot be altered once validated. The finance team finds that a sale was recorded on the ledger at an incorrect quantity. Which approach best aligns with sound accounting practice for correcting this in the books?

The error should be corrected by recording a new adjusting or reversing transaction, leaving the original entry intact. Immutable ledgers preserve the audit trail, so deleting blocks or altering hashes is improper, and the technology does not guarantee that the original input data was accurate.

  1. ARecord a new correcting transaction on the ledger and in the books, preserving the original entry and the audit trailCorrect
  2. BDelete the original block so that the ledger shows only the correct quantity
  3. CIgnore the error because blockchain entries are always accurate
  4. DAlter the ledger hash to match the corrected quantity

Explanation

Immutable ledgers are corrected by adding a reversing or adjusting entry, keeping the original record and trail intact. Deleting blocks or altering hashes defeats the ledger's integrity, and blockchain does not guarantee that inputs are accurate.

Did you get it right without looking?

One question tells you little. A timed set on Accounting and Technology shows your real accuracy, how long you take and where you lose marks.

Practise Accounting and TechnologyFree diagnostic mock

More Accounting and Technology questions