adjusting entry

Definition

A bookkeeping entry made at the end of an accounting period to assign income and expenses to a different period. These entries are made under the accrual accounting systems in order to correctly reflect the timings of income and expenditure. Some adjusting entries include accounts receivable, accounts payable, depreciation and amortization.

Use adjusting entry in a sentence

You should make sure that you do not forget to make any adjusting entry so that your records are correct.

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At the end of the month the accountant needed to make an adjusting entry to one of the accounts due to a reversal in a payment.

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My boss instructed our accountant to include an adjusting entry in our accounting statements to move payroll one day into the next fiscal year to show better financial results this year.

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adjusted trial balance post-closing trial balance