What are Reversing Journals in Tally ?
Reversing Journals
Reversing Journals are special journals that are
automatically reversed after a specified date.
They exist only till that date and are effective only when called for in
reports like the Balance Sheet. These
are used in interim reporting in the course of the financial year where
accruals are required to be reported.
These accruals are usually short term and are cleared in the subsequent
period.
However, to get a proper perspective, decision makers
require the reports with full impact of all aspects and transactions. An example is the provision for
depreciation. Depreciation is usually
provided for at the end of the year.
However, for monthly reporting including it would give a more accurate
status.
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