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if journal entry is misclassified to some other account then it is required to re-classify the journal entry for correct impact or record purposes.

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Q: Why do you need to re class a journal entry?
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Related questions

Why do you need to re-class a journal entry and clearing an accounting in accounting?

Because somebody made an error, or there was some other kind of misunderstanding. It happens all the time.


Why do you need to re-class a journal entry?

You generally re-class an entry in your financial books if it has been wrongly placed against a certain account. An example of this an expense that was related to a project grant that was classed by your Finance Department on unrestricted dollars. You'd re-class it so you can have the real numbers of expenditures from certain grant lines or financial sources and prevent the misappropriation of disbursements. Hope this answers your question. -A from New York, NY


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Land is not a current asset and if recorded as current asset then no entry required to re-classify as fixed asset.


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