The post-closing trial balance is a listing of all permanent accounts and their balances after closing entries have been journalized and posted. It ensures that debits equal credits after the closing process.
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The post-closing trial balance includes only balance sheet accounts, as all temporary accounts have been closed.
It serves to verify that total debits equal total credits after the closing entries.
This trial balance is prepared at the end of an accounting period after all closing entries are made.
The main purpose is to ensure that the ledger is in balance and ready for the next accounting period.
If there are discrepancies in the post-closing trial balance, it may indicate errors in the closing process or recording transactions.
Accounts that track financial results for a limited period, such as revenues, expenses, and dividends, which are closed at the end of each accounting period.