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Each of them is used at different times during the full accounting cycle. Notice that this trial balance looks almost exactly like the Paul’s balance sheet except in trial balance format. This is because only balance sheet accounts are have balances after closing entries have been made. Since there are several types of errors that trial balances fail to uncover, each closing entry must be journalized and posted carefully. For example, an unadjusted trial balance is always run before recording any month-end adjustments. Once the adjustments have been posted, you would then run an adjusted trial balance. This means that there is no error while posting the closing entries to their individual accounts and then listing those account balances on the post-closing trial balance. It ensures that at the end of an accounting period, the sum of the total debits is equal to the sum of the total credits. The post-closing trial balance gives a listing of each permanent account that a company has and its balance. Post-Closing Trial Balance Purpose Nominal accounts are those that are found in the income statement, and withdrawals. The primary purpose of preparing this post-closing trial balance is to ensure that all accounts are balanced and […]