Payroll liabilities need adjusting off books

Fund Accounting, Accounts Payable, Accounts Receivable, Payroll

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HWessling
Posts: 32
Joined: Wed Feb 23, 2005 9:23 pm
Location: Immanuel Baptist Church

Payroll liabilities need adjusting off books

Post by HWessling »

As I am doing year end clean up I have some fractions of cents that has accumalated for the year that needs adjusting off the books. Can I make a direct entry to the fund balance or what is the other side of the entry besides the payroll liability accounts?

Thanks in advance!

Matt
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Post by Matt »

I would adjust these to one of your payroll expense accounts such as Salaries Expense. It is not good accounting practice to make entries directly to the fund balance.

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