what is the diff between reversal and cancellation entries?

Question Posted / prasanth kalarivayil

3 Answers
6627 Views
ABN AMRO, I also Faced
E-Mail Answers

Answers were Sorted based on User's Feedback

what is the diff between reversal and cancellation entries?..

Answer / s subhalaxmi

Most of the cases both are considered in same sense,but we
use reversal when we made some mistakes while passing
entries which we need, but cancellation used when there is
no necessary for the entry at future.

Is This Answer Correct ?

6 Yes

0 No

what is the diff between reversal and cancellation entries?..

Answer / suburam

'Reversal' is a rectification of mistake.

'Cancellation' is an Adjustment.

Is This Answer Correct ?

3 Yes

0 No

what is the diff between reversal and cancellation entries?..

Answer / sangeetha g

I agree with S Subhalaxmi. I have another answer too
reversal for rectification for closed period. cancellation
for open period. I mean

exp: wrong entry for rs.100 on APR 8 2009. if closed period
is Mar 08 to Apr 09. Once we closed the book as of Apr 09
and realised the rs.100 wrong so I can't cancel the entry
due to closed i can reverse in MAy 1 2009.

Is This Answer Correct ?

2 Yes

0 No

Post New Answer

More Accounting AllOther Interview Questions

Gross salary is 762000, PF deducted 38000, ESI deducted 6700, TDS deducted 6000, Advance deducted from staff 12000, net salary sent to bank 699300. How do we enter journal in Tally 7.2

3 Answers

Mening of Earning per share?

6 Answers

what is Accrual ?

6 Answers

What is Meaning Of accounting Function , Fund Management, Equities, Mutual Funds, Fixed Income Secrities, Derivative, Accounts of Trade, Share Holder Transaction,Knowledge on Using bloombag?

1 Answers

What is the rate of Service Tax in Haryana w.e.f. 1, April,2010.

7 Answers

What is the entry for payment made to the distributor after deducting TDS and adjusting the credit note raised by them. For Ex: actual amount to pay rs.1000 TDS deducted rs.200 credit note of rs.500

2 Answers

what difference between current cost and current value?

1 Answers

why inward bill register (IBR)not called as Bills Payable?

1 Answers

what is 94c,94J,and 94I form meant for ?

11 Answers CA, Chartered Accountant, RP, TTC, Vertex,

In Tally what do you mean by cost centre?

5 Answers Hindustan Unilever Limited, Wipro,

If you keep an amount for the office interior designing purpose what is the entry?

5 Answers bscpl, L&T,

what is indirect tax?

48 Answers Capital IQ,

For more Accounting AllOther Interview Questions Click Here