What are the items settings?

Items editing are accounting items that are designed to compensate for transactions that may not be recorded in the main book because they cover several accounting periods, or because the transactions have not caused anything. These items are added at the end of the accounting period before closing the books. Manipulation of recording editing can be complicated and may sometimes require just an just -just call, and some people are preferred to leave them accountants.

There are two types of modifications. The increase is the expenditure or income that occurred before the end of the accounting period, and delay is the expenses or incomes that occur after the end of the accounting period. A simple example of an acrual is the interest that earns a bank account. If the interest is not recorded in the accounting book, a fake picture of the company's financial health is created, which must be added to indicate that the interest of the mallow, even if it has not yet been paid.

Another example of the addition is the services that have been provided but have not yet been paid. It is important to realize that people in a given month have performed a number of services, even if the funds have not yet been received. Similarly, the payouts can be entered as an adjustment, indicating that the company owes money to employees based on the amount of work they have done, even if the payouts have not yet been issued. For example, if the paycheck period lasts from 15 to 15, but the accounting period is closed on the last day of the month, adjustments are needed to reflect wages earned between 15 and the last day of the month.

Record modifications can be used to take into account things such as earned and paid interest, payouts, prepaid expenses, undeserved income, etc. Another example of the modification is to try that is designed to be responsible for depreciation and other changes in assets. For example, when the company buys office supplies, costs are written off but deliveries are considered as an asset because they have value and the company isáte. Since the office needs increase, the value of the assets will decrease, and this can be seen by modification. Similarly, it would be possible to notice the assessment of assets using records.