shirley

• Mar 5th, 2006

 

salary adjusting entry ?  salary adjustment ending two days before the fiscal year ends

Prasanth

• Sep 11th, 2006

 

Adjusting entries are those entires thts passed to rectify an error or wrong entry already made.... some accounting softwares have disabled edit function in the accounts, so the only way to undo the mistake is to pass a correction entry or adjusting entry...

rama krishna

• Jul 16th, 2007

 

An adjusting journal entry means, if you made any wrong entry (may be principle, amount, party name) , to correct that one an entry must be passed, that entry is called adjusting entry

Jon

• Sep 15th, 2007

 

Adjusting entries are not "correcting entries."  By textbook definition, they are periodic entries made to satisfy the revenue recognition principle and matching principle.  They never involve the cash accounts, and must involve one income statment account and one balance sheet account.  The four types are accrued liability, accrued asset, deferred revenue, and deferred expense.  An example would be the adjusting entry for depreciation:

Depreciation Expense                   XXX
Accumulated Depreciation                     XXX