Recover the journal's purpose, source and review evidence before relying on an entry with no useful description. A balanced debit and credit establish arithmetic, while the business reason still needs support.
Trace the origin
Record the journal number, posting date, accounts, amount and preparer. Check the import batch, calculation, underlying documents and any related automatic rule. Identify whether the entry is a reclassification, accrual, correction or another adjustment.
Ask the preparer for an explanation tied to the transaction. Avoid adding a generic description such as adjustment that leaves the next reviewer with the same question.
Test the explanation
For example, a month-end entry moves an amount between two expense accounts. Locate the invoice and allocation instruction, confirm the reporting period and check the reviewer approval. If no evidence can be found, flag the entry for the accountant rather than inventing a reason from the account names.
Check whether a reversal or subsequent entry exists so the investigation covers the full sequence. Preserve the original posting history when adding explanatory support.
Complete the audit trail
Keep the explanation, calculation, document links and review outcome with the journal reference. Have the accountant approve any required correction through the system's normal process. Reconcile affected balances again and record any unresolved item in the close checklist. The final description should help a reader understand both the event and the accounting decision.
Related practical guidance
For the surrounding records and responsibilities, see bookkeeping basics, company records to keep, bookkeeping and accounting.
Official guidance: the relevant official guidance.
Help with your company records
For accounting, bookkeeping and related compliance support, contact Raffles Corporate Services at [email protected] or WhatsApp +65 8501 7133. Tell us which records or process need attention so we can discuss the relevant next steps.
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