Bookkeeping Exercises
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Module 19About 8 minPro practice

The post-closing trial balance

Objective: Prepare and check a post-closing trial balance.

Recommended first: Closing entries

After closing, a post-closing trial balance should list only assets, liabilities, and Owner Capital — no revenue, expense, drawings, or Income Summary. Its totals are usually lower than the adjusted trial balance because temporary accounts are gone.

The post-closing trial balance is the final check before a new period begins. Any revenue, expense, or drawings balance means a closing entry was missed. The remaining balances become the opening balances of the next period, so accuracy here carries forward.

Its totals are lower than the adjusted trial balance because temporary accounts are gone, and Owner Capital now includes the period's net income less drawings. Compare that capital figure with the ending balance on the statement of owner's equity.

Check your work

  • Are only permanent accounts listed?
  • Do totals agree?
  • Does Owner Capital equal the ending equity figure?
Worked example: Net loss close

Income Summary has a $600 debit balance (loss).

Journal entry for the worked example
AccountDebitCredit
Owner Capital$600.00
Income Summary$600.00

Common mistakes

  • ✗ A revenue account still showing a balance.

    ✓ A closing entry was missed.

Guided practice

Use hints freely here.

Item 1 of 1

Proadvanced

Close Income Summary (loss)

After closing revenues and expenses, Silverline Photography's Income Summary has a $1,800.00 debit balance. Close it to Owner Capital.

Checking answers on Pro items requires a Pro or Lifetime plan. See plans.

Silverline Photography · accrual basis · USD

Journal entry lines
AccountDebitCreditRemove
Totals$0.00$0.00

Enter amounts to see totals.

Independent practice

Try these without hints. Completing the lesson needs at least one independent item solved without revealing the answer.

Item 1 of 3

Freeeasy

Which accounts are closed?

Select every account that is closed (brought to zero) at the end of the period.

Select all that apply
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Key terms

Post-closing trial balance
A trial balance after closing entries.

References and provenance

Original lesson written for Bookkeeping Exercises (AI-assisted drafting). Calculations are verified by the platform's automated accounting tests. Not yet reviewed by a credentialed accountant. Updated 2026-10-29.