What Are Reversing Journal Entries
These Entries are passed to set off the accounts previously Debited or Credited a nd recorded at t he start of t he new accou nti ng . T his is a n optio nal Step of Accou nti n g Cycle . For Example, Wages Outstanding adjusting Entry is as follows: Wages Expense a/c XXX Wages Payable a/c XXX (Wages Accrued / Outsta ndi ng For The Period) At t he start of next accou nti ng the reverse entry is passed to set off Wages Payable Adjusting Entry a nd Wages Expe nse Accou nt ...