Post-Closing Trial Balance

>> July 22, 2013


When we make income statement after adjusted trial balance balance, we can make post closing trial balance. Post closing trial balance is made before making balance sheet. We do not include income and expenses accounts' balances in post closing trial balance. We just include assets, liabilities and capital accounts.

Net profit from income statement will increase the capital balance in post-closing trial balance. Drawing will decrease the capital balance in post closing trial balance. Post closing trial balance is just like balance sheet but the format will be of trial balance. One side of this will be the debit balance and second side will be the credit balance.





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