Adjusting Journal Entries

Adjusting entries are journal entries that are posted to the general ledgers usually at the end of an accounting period to record business events that occurred during a specific accounting period but were not recorded.

Adjusting entries are usually made to report and record the following:

• Revenues that have been earned but are yet to be entered into the accounting ledgers;
• Expenditure that have been incurred but have not yet been posted into relevant general ledger accounts;
• Revenues that have already been recorded but are yet to be earned by the company;
• Expenses recorded by the entity that pertain to a future accounting period.