Question

We are learning in this topic about adjusting entries. If our business affairs are to be conducted in a godly manner, we could consider Luke 16:12: "And if you have not been trustworthy with someone else's property, who will give you property of your own?" Think about this verse, and explain how this might be applied to the topic of adjusting entries.

Answer 1

Answer:

The significance of this verse is that it is critical to be valid in care of property that belongs to others. In the event that an individual has not been valid being taken care of by property belonging to other people then that individual will think that its hard to get his own property from others and his own things from others. As it were it is significant for you to be reliable/trustworthy of others' property that has a place with others.

This verse discovers application concerning the subject of adjusting entries. Here the verse applies to an accountant and a bookkeeper who is answerable for accounting entries and for keeping up books of accounts in a company. Adjusting entries are changes to bookkeeping entries that has just been recorded.

Subsequently an accountant or a bookkeeper should pass suitable adjusting entries in order to guarantee that a fitting track is kept of what the business has earned during the bookkeeping time frame and what it has expensed.

For instance in the event of collected expenses adjusting entries will assist the business with deciding every one of those costs that has been accrued yet has not yet been paid.

Subsequently the business will have the option to clear the entirety of its dues on schedule and guaranteeing that all omitted entries are recorded and all mistakes are rectified. In this manner the accountant is taking appropriate consideration of the bookkeeping or accounting statements and guaranteeing that they present genuine figure of profit or loss.