California Code of Regulations
Title 2 - Administration
Division 2 - Financial Operations
Chapter 2 - State Controller
Subchapter 1 - Accounting Procedures for Counties
Article 7 - Account Adjustment Policy
Section 947 - Adjustments to Individual Accounts

Adjustments to individual accounts are limited to reductions of specific accounts for (1) disbursements which correct a previous revenue, and (2) receipts which correct a previous expenditure.

These reductions should be entered in the proper revenue or expenditure accounts. When they affect transactions of a prior year they should reduce the accounts, "Revenues applicable to prior years" or "Expenditures applicable to prior years."