Adjusting year end entries

This query is : Resolved

priyankasanghi (Querist)
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01 August 2013 sir,
at the year we pass some of the adjusting entries like for salaries, outstanding expenses incomes, prepaid expenses etc.

Do we reverse all the adjusting entries on the starting of the next year or only few.

i think we dont reverse the salaries due entry.

please answer its urgent.

thanks in advance

Kumar

Kumar (Expert)
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01 August 2013 You can reverse all the entries and pass entries in the next year on actual bookings

Salaries payable if on payment will be debited to salary payable a/c then this need not be reversed

priyankasanghi

priyankasanghi (Querist)
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01 August 2013 Are there any other adjusting entries like salaries for which reversal is not required

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FCMA CS Pardeep Khaneja

FCMA CS Pardeep Khaneja (Expert)
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02 August 2013 All entries will be reversed related to expenses and passed actual entries after year end. Bonus payable entry not need to reverse because, provision for bonus you will pay in actual during the current year.