Prepare a post closing trial balance.
Post-closing trial balance
After passing all the journal entries and the closing entries of the permanent accounts and then further posting them to each of the respective accounts, a post-closing trial balance is prepared, consisting of a list of all the permanent funds. A post-closing trial balance serves as evidence to prove that the balance of the permanent accounts is equal.
Prepare a correct post-closing trial balance.
|S Service Company|
|Post-Closing Trial Balance|
|On July 31, 2018|
|Debit ($)||Credit ($)|
According to the post-closing trial balance, the temporary accounts like revenues, expenses are closed. Then those accounts are transferred to a permanent fund to prepare the post-closing trial balance.
Following are the types of accounts are listed on the post-closing trial balance.
Answers can be found in the Explanation section.