What is Post Closing Trial Balance - Definition - Meaning - Examples - Explanation

We already studied about Adjusted Trial Balance which is prepared at the time of preparing Adjusting Entries in order the adjust the balance of All Types of Accounts but post closing trial balance is prepared to show only Permanent Accounts which are Assets, Liabilities And Equity and not Temporary Accounts which are Expenses, Revenues and Income Summary Account. So, Trial Balance is prepared after passing Closing Entries in order the verify the balances of Permanent Accounts or to check the totals of Debits with the totals of Credits consisting of these Accounts.

        ABC Co.

         Post Trial Balance

       31^st December, 2017

 

                                         Debit                                Credit

                                            Rs.                                    Rs.

Cash                                 70000

Accounts Receivable       20000

Inventory                          30000

Prepaid Rent                     8000

Accounts Payable                                                     80000

Outstanding Salaries                                                 35000

Owner’s Equity                                                         13000

                                   __________                 ___________

Totals                             128000                             128000

                                   __________                 ___________

                                   __________                 ___________