Post Closing Trial Balance – Process, Format & Examples

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Post closing trial balance consist a list of ledger accounts balances and it is prepared after closing entries are passed and posted to ledger accounts. It is the final step in accounting cycle. As the name implies, it is prepared when financial statements are finalized in all respects. This trial balance is prepared just to confirm that accounts which were not nominal in nature i.e. Assets and liabilities are in balance and agreement and correct balances thereof are being carried forward to next accounting period. So this is obvious that data which are recorded in the post closing trial balance is taken from the Balance Sheet. The items appearing on the Assets side of the Balance Sheet are shown on the Debit side of such Trial balance while items appearing on the liabilities side of the Balance sheet are shown on the credit side of this Trial balance.

Process

In order to approach to a post closing trial balance in an accounting cycle, the following process has to be observed:

  1. Passing journal entries
  2. Posting to the ledger accounts
  3. Preparation of un-adjusted Trial balance
  4. Making adjustments in the record
  5. Preparation of adjusted trial balance
  6. Preparation of final accounts (financial statements) which include Balance sheet, income statement, cash flow statement, statement of changes in equity and the notes to the accounts
  7. Recording closing entries
  8. At last, preparation of post closing trial balance

Format

There is no difference at all among the formats of post closing trial balances, unadjusted and adjusted Trial balance. This closing trial is created in the same format in which other trial balances are prepared.

It can easily been see that the post-closing trial balance is containing only Balance sheet items which are to carry forward for to next accounting period.