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    helpinhouston's Avatar
    helpinhouston Posts: 1, Reputation: 1
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    #1

    Jul 23, 2007, 09:48 AM
    How does an eliminating entry differ from an adjusting entry
    How does an eliminating entry differ from an adjusting entry
    newlen5990's Avatar
    newlen5990 Posts: 9, Reputation: 2
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    #2

    Oct 14, 2007, 04:54 AM
    An adjusting entry is made to update accounts for items that may have been recorded wrong or not at all. Eliminating entries are closing entries to close out the result of operations net income or net loss to owner's equity, and reduce revenue, expense, and drawing account balances to 0.
    bmjcwalker's Avatar
    bmjcwalker Posts: 1, Reputation: 1
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    #3

    Feb 12, 2012, 03:05 PM
    Eliminating Entries ARE NOT closing expenses to Retained Earnings. Eliminating Entries are entries to eliminate Intercompany transactions between related companies, etc... Basically, Eliminating entries are to determine the true profitability of each related company. Zero'ing Income Statement accounts to Retained Earnings is an entry called "Closing Entry". It is performed once, at year-end.
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