A post-closing trial balance is a report that lists the balances of all permanent accounts (also known as real or balance sheet accounts) after the closing entries have been made. It is prepared after the closing entries have been recorded and is used to verify the equality of the debit and credit balances in the general ledger.
The post-closing trial balance is different from the pre-closing trial balance, which is prepared before the closing entries have been made and includes the balances of both temporary and permanent accounts.
The purpose of the post-closing trial balance is to ensure that the balances of the permanent accounts are correct and that the accounting records are in balance before the financial statements are prepared. It is also used to identify any errors that may have been made during the closing process.
Here is an example of a post-closing trial balance:
| Account | Debit | Credit |
| Cash | $15,000 | |
| Accounts Receivable | $15,000 | |
| Inventory | $20,000 | |
| Prepaid Rent | $5,000 | |
| Equipment | $30,000 | |
| Accumulated Depreciation | $10,000 | |
| Accounts Payable | $7,500 | |
| Notes Payable | $12,500 | |
| Capital Stock | $25,000 | |
| Retained Earnings | $30,000 | |
| Total | $85,000 | $85,000 |
In this example, the post-closing trial balance shows the balances of all permanent accounts after the closing entries have been made. The total debits equal the total credits, indicating that the accounting records are in balance.
It’s important to note that the post-closing trial balance is only prepared after the closing entries have been made and is not used for any other purpose. It is not a formal financial statement and is not provided to external stakeholders.