"Offset" is correct, which means that the income and expenditure accounts offset each other, or the amounts payable by two accounts offset each other.

1. "Offset"

1. Correction of wrong accounts

If the accounting treatment is wrong, you can use the red letter correction method to correct it, that is, use the red letter to register a The entry is the same as the wrong account.

2. Hedging

Two units that have business dealings have mutual debts. Unit A is receivable from unit B for goods A, and unit B happens to be receivable from unit A for goods B. With the consent of the two units, the payables and receivables can be offset against each other, also called hedging, so that the debts owed by both units are written off.

3. Write-off

Write off a certain expense or income so that the account balance is 0. At the end of the year, there is a balance in the property profit and loss account to be processed, which should be temporarily handled according to regulations. If the results are different after approval, the adjustment will be made. At this time, an entry must be made, debit: Non-operating expenses, credit: Property profit and loss to be processed, and put the balance to be processed. The property profit and loss account is cleared (returned to zero).

4. Cancellation

The original accounting process is temporary. When the invoice or other accounting basis is received, the original temporary processing will be canceled and registered again. A more typical one is the provisional estimation of raw materials.

2. Charge

"Charge" has meanings such as fullness, responsibility, and counterfeiting. It is extremely easy to confuse when used, especially in the context of counterfeiting and corruption mentioned above. , corrupt officials used other bills to offset accounts and seek personal gain. There is no such thing as "charge" in accounting.

Offsetting method

1. Debit and credit equalization method

The debit and credit equalization method refers to offsetting erroneous accounts by debiting and debiting in the opposite direction, that is, If an income is mistakenly recorded on an expense account, the error can be reversed by debiting the income account.

2. Record the reversal voucher

Recording the reversal voucher means creating a special reversal voucher to correct erroneous account records. The voucher should contain a detailed description and reason, as well as the correct amount and classification.

3. Reverse accounting method

The reverse accounting method refers to directly performing reverse accounting for erroneous accounts, that is, recording the previous error as the opposite amount. That is, if you earn $100 by mistake, it should be directly counted as an expense of $100.