Bookkeeping

In other cases, such as complex accounting adjustments or ongoing errors, a balance in the OBE account signals of a more critical impact on your accounting. In such situations, it’s essential to investigate the cause of the balance and take appropriate actions to resolve any discrepancies or errors in the accounting records. So, upon completing […]

The general journal is the all-purpose journal that all transactions are recorded in. Since all transactions are recorded in the general journal, it can be extremely large and make finding information about specific transactions difficult. That is why the general journal is divided up into smaller journals like the sales journal, cash receipts journal, and purchases journal.

Therefore, all the adjusting entries must be reviewed by the management teams such as accounting manager or finance manager. The person who approves these kinds of transaction must know the impact and know what he is doing. After recording this entry, the prepaid insurance should already show a zero balance since the whole insurance plan