Post-closing Trial Balance
A list of all permanent accounts with their balances after closing entries, verifying that total debits equal credits and only balance sheet accounts remain.
Post-closing Trial Balance
A list of all permanent accounts with their ending balances after closing entries have been recorded, ensuring that debits equal credits and the accounting equation remains in balance.
For instance, after a company completes its year-end closing process, the post-closing trial balance would show asset accounts like cash ($50,000) and equipment ($150,000), liability accounts like accounts payable ($35,000), and equity accounts like common stock ($100,000) and retained earnings ($65,000).
This trial balance represents the final step in the accounting cycle, confirming that temporary accounts (revenues, expenses, dividends) have been closed to retained earnings and only permanent accounts (assets, liabilities, equity) remain with correct balances to begin the next accounting period.