Locate the area of the paint chip.
Open a small tub of quick-drying repair mud.
Dip the blade of the putty knife into the mud and take out enough mud to fill the hole.
Spread the mud over the paint-chipped area until the hole is filled flush with the surrounding surface area.
Scrape the blade directly over the hole flush with the surrounding surface.
Allow the mud to dry for 2 to 3 hours.
Sand the mud with a 120-grit sanding block.
Apply a second coat of mud over the first layer.
Allow this coat to dry.
Sand the area again until the repair is flush with the surrounding surface area. Keep the sanding block flat on the surface to avoid gouging out the repair mud.
Prime the mud with some drywall primer paint using a paint brush.
Allow the primer to dry for a few hours.
Paint over the primer paint with a color matching the rest of the wall or ceiling. Feather the brush strokes out so they won't be visible when the paint dries.