What is a Reclass Entry
The Accounting Journal Entry which is recorded when we transfer the amount of a Ledger Account to another due to a mistake, an error or some other reasons is called Reclass Entry and the whole process in which we record reclass entry is called Reclassification in accounting. For Example, Instead of Rent Expense Account , the company wrongly debit Salary Expense Account of Rs. 50000 when recording the rent expense journal entry. Wrong Entry is show n below Salary Expense a/c 50000 Cash a/c 50000 ...