Question

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

The meaning of this verse is that it is important to be true in care of property that belongs to other people. In case a person has not been true in the care of property belonging to other people then that person will find it difficult to get his own property from others and his own things from others. In other words it is important for you to be trustworthy of other people’s property that belongs to others.

This verse finds application with regards to the topic of adjusting entries. Here the verse applies to a bookkeeper and an accountant who is responsible for accounting entries and for maintaining books of accounts in an organization. Adjusting entries are changes to accounting entries that has already been recorded. Thus a bookkeeper or an accountant should pass appropriate adjusting entries so as to ensure that an appropriate track is kept of what the business has earned during the accounting period and what it has expensed. For example in case of accrued expenses adjusting entries will help the business to determine all those expenses that has been accrued but has not yet been paid. Thus the business will be able to clear all its dues on time and ensuring that all omitted entries are recorded and all errors are rectified. Thus the accountant is taking proper care of the accounting statements and ensuring that they present actual figure of profit or loss.