Learn how to create adjusting journal entries to adjust account balances, and to review the Adjusted Trial Balance report.
Ensure that your total debits in the general ledger equal the total credits by entering adjusting journal entires to review the Adjusted Trial Balance report.
|Note: You must be logged in to a company file in QuickBooks Online Accountant to use these features.|
Adjusting Journal Entries
An adjusting journal entry is a journal entry that adjusts an account balance.
You can create adjusting journal entries for a variety of reasons, including
- Booking depreciation or amortisation
- Reallocating accruals and reversing accruals of prepaid income or expenses
- Adjusting tax payable for interest, discounts, or penalties
- Entering bank or credit card fees or interest
You can designate journal entries as adjusting journal entries to allow you to easily identify and report on these entries.
Make adjusting journal entries
- From the Toolbar, select the client's company from the Go to client's QuickBooks drop-down list.
- Select the + New button.
- Under Other, select Journal Entry.
- Select the Is Adjusting Journal Entry? checkbox.
- Enter the journal entry, as required.
- Select Save.
The journal entry is recorded and identified as an adjusting journal entry.
The Adjusted Trial Balance
The Adjusted Trial Balance lists all of the accounts balances contained in the general ledger before adjusting entries are applied, the total of the adjusting entries for an accounting period, and the account balances after adjusting entries have been posted to the accounts.
The Adjusted Trial Balance is an internal document, not a financial statement. The purpose of the Adjusted Trial Balance is to help you to verify that the total amount of debit balances in the general ledger equals the total amount of credit balances.
Review the Adjusted Trial Balance
The Adjusted Trial Balance report lets you review the Adjusted Trial Balance:
- Go to Reports.
- Enter Adjusted Trial Balance in the Search bar, or browse to the Adjusted Trial Balance report on the Accountant Reports tab.
- Select Adjusted Trial Balance (Accountants Only) from the list of results to open the report.
The report displays balances and adjusting entries for each account.