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."
Cal. Code Regs. Tit. 2, § 947