What Are Reversing Journal Entries

For Example, Wages Outstanding adjusting Entry is as follows:
Wages Expense a/c XXX
Wages Payable a/c XXX
(Wages Accrued / Outstanding For The Period)
At the start of next accounting the reverse entry is passed to set off Wages Payable Adjusting Entry and Wages Expense Account as shown below:
Wages Payable a/c XXX
Wages Expense a/c XXX
The entry to pay wages to workers is as follows:
Wages Expense a/c XXX
Cash / Bank a/c XXX
(Paid Wages For Cash or By Cheque / Check)
So, Reversing Entries are made to cancel or set off the affect of Adjusting Entries recorded in Current Period and Previous Accounting Period.
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