The-definition.com

Definition

Post-closing trial balance

The post-closing trial balance is a list of permanent accounts and their balances after a company has journalized and posted of closing entries.

The purpose of the post closing trial balance is to prove the equality of the permanent account balances carried forward into the next accounting period. Since all temporary accounts will have zero balances, the post-closing trial balance will contain only permanent-balance sheet-accounts.

Share it:  Cite

More from this Section

  • Auditing
    Auditing is the examination of financial statements by a certified public accountant in ...
  • Indirect labor
    Indirect labor refers to the work of factory employees that has no physical association ...
  • Off-balance-sheet financing
    The practice of keeping leased assets and lease liabilities off the balance sheet is referred ...
  • Master budget
    The term “budget” is actually a shorthand term to describe a variety of budget documents. ...
  • Internal check
    Internal check is a method of organizing the accounts system of a business concern or ...