Brilliant Accounts On Post Closing Trial Balance

The post-closing trial balance also known as the after-closing trial balance is the last step of the accounting cycle and is prepared after making and posting all necessary closing entries to relevant ledger accounts.

Accounts on post closing trial balance. Post Closing Trial Balance is the list of the all the balance sheet items along with their balances excluding the zero balance accounts and is used for the purpose of verification that temporary accounts are properly closed and the total of balances of all the debit accounts and all the credit accounts are equal. The post-closing trial balance also known as after-closing trial balance is the last step of accounting cycle and is prepared after making and posting all necessary closing entries to relevant ledger accounts. The post-closing trial balance contains columns for the account number account description debit balance and credit balance.

No temporary accounts revenues expenses or dividendsare included because. Only assets liabilities common stock and retained earnings appear on the post-closing trial balance. The temporary accounts must be closed at the end of the accounting period.

Since closing entries close all temporary ledger accounts the post-closing trial balance consists of only permanent ledger. The main difference between post-closing trial balance and adjusted trial balance is that this statement contains the income statement accounts like revenues expenses and other gain or lost accounts. At this point in the accounting cycle all the temporary accounts have been closed and zeroed out to permanent accounts.

The accounting cycle ends with the preparation of a post-closing trial balance. This trial balance lists the accounts and their adjusted balances after closing. The post-closing trial balance is used to verify that the total of all debit balances equals the total of all credit balances which should net to zero.

The post-closing trial balance includes permanent accounts from ledger journal. Therefore a post-closing trial balance will include a list of all permanent accounts that still have balances. A post-closing trial balance is a listing of all balance sheet accounts containing non-zero balances at the end of a reporting period.

Since closing entries close all temporary ledger accounts the post-closing trial balance consists of only permanent ledger accounts ie balance sheet accounts. A Post-closing Trial Balance lists all the balance sheet accounts that have a non-zero balance at the end of a reporting period. A post-closing trial balance is a listing of all balance sheet accounts containing non-zero balances at the end of a reporting period.