Glossary
Reversing entry
A reversing entry cancels the effect of an earlier entry by putting the same amounts on the opposite sides.
What it means for a shop owner
Fix a mistake with it instead of erasing the old entry, so the trail stays visible and can be reviewed. It is also used at the start of a period to undo an adjusting entry. Write the reason in the description.
A worked example
You recorded an expense of 90 instead of 60. You post a reversing entry of 90, then a correct entry of 60.
Related
Try it in your shop, free, no card.
The free plan: the whole shop for one branch, an offline cashier with stock, debts and accounting, with a daily limit on invoices, expenses and purchase orders. What it includes