What is the logic behind transferring the outstanding salary to salary a/c at the beginning of the financial year?

Reversing entries are those entries which reverse the effect of previously recorded adjusting entries in order to facilitate better way of recording. Just like accrued salaries(outstanding salaries) which is being recorded as debit to salaries and wages and credit to Accrued salaries payable. At the beginning of the year, it will be reversed such as debiting accrued salaries payable and crediting Salaries and wages.

Where the organization does not intend to maintain the information relating to outstanding expenses distinctly from the information relating to the current period expenses, the expenditure outstanding a/c is created at the end of the accounting period and is written off by transfer the expenditure a/c at the beginning of the subsequent accounting period.