Question

There is a third trial balance that is done as well after the adjusted trial balance. Do you know what that is and why it is necessary?

Answer 1

A Third trail balance is prepared i.e. Post Closing Trail Balance which is prepared after closing entries are posted to the Ledger.The main purpose of preparing this third trail balance is to to check the equality and acuracy of debit and credit side after closing entries are posted.Post Closing Trail Balance is a Real account as all the nominal accounts are already closed

example of this post closing trial balance
X&co.
Post Credit Trial Balance
Account Title		Debit		Credit
Cash		$ 7,480.00
Accounts Receivable		3,700.00
Service Supplies		600.00
Furniture and Fixtures		3,000.00
Service Equipment		16,000.00
Accumulated Depreciation				$      720.00
Accounts Payable				9,000.00
Utilities Payable				1,800.00
Loans Payable				12,000.00
Mr. Gray, Capital				7,260.00
Totals		$ 30,780.00		$ 30,780.00

The balances of the nominal accounts (income, expense, and withdrawal accounts) have been absorbed by the capital account – Mr. Gray, Capital. Hence, you will not see any nominal account in the post-closing trial balance.