Discuss and Analysis on Reversing Entries

Principle objective of this article is to Discuss and Analysis on Reversing Entries. Here briefly explain on Reversing Entries with proper example. At the beginning of each accounting period of time, some accountants use reversing entries to cancel out the adjusting entries that have been made to accrue revenues and expenses at the end of the previous data processing period. Reversing entries make it easier to record subsequent transactions through the elimination of the need for a number of compound entries.