03-04-2009, 03:12 AM
Hi asad,
are you satisfied with 31st Dec's entry i.e.
Dr Salary expense 1000
Cr Salary payable 1000
Now use your mind, n think on 1st January, a complete reversal of this entry is logical?
The accounts have been closed on 31st Dec....your Salary Expense A/c (Ledger) has nil balance after closing....Now if you make reversal on 01 January i.e.
Dr Salary payable 1000
Cr Salary expense 1000
Before above entry your salary expense A/c has a nil balance....and after above entry your Salary Expense A/c has a Credit Balance of 1000....Salary expense is an Expense A/c, how does it have a Credit Balance?
This reversal is not logical....doesn't makes any sense....
About your book, i haven't any idea, but if such reversal is there in your book then its interesting for me to see this book....
Satisfied?????????
Ask more if still confused
are you satisfied with 31st Dec's entry i.e.
Dr Salary expense 1000
Cr Salary payable 1000
Now use your mind, n think on 1st January, a complete reversal of this entry is logical?
The accounts have been closed on 31st Dec....your Salary Expense A/c (Ledger) has nil balance after closing....Now if you make reversal on 01 January i.e.
Dr Salary payable 1000
Cr Salary expense 1000
Before above entry your salary expense A/c has a nil balance....and after above entry your Salary Expense A/c has a Credit Balance of 1000....Salary expense is an Expense A/c, how does it have a Credit Balance?
This reversal is not logical....doesn't makes any sense....
About your book, i haven't any idea, but if such reversal is there in your book then its interesting for me to see this book....
Satisfied?????????
Ask more if still confused
