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-   -   Closing entries and post closing trial balance (https://www.askmehelpdesk.com/showthread.php?t=265290)

  • Sep 30, 2008, 07:15 PM
    neeco32
    Closing entries and post closing trial balance
    Question: The following adjusted trial balance contains the accounts and balances of Cruz Company as of December 31, 2008 the end of its fiscal year. (1) Prepare the December 31, 2008 closing entries for Cruz Company. (2) Prepare the December 31, 2008 Post closing trial balance for cruz Company.

    No account title debit credit

    101 Cash 19,000
    126 Supplies 13,000
    128 Prepaid insurance 3,000
    167 Equipment 24,000
    168 Accumulated depreciation-equipment 7,500
    301 T. Cruz, Capital 47,600
    302 T. Cruz, Withdrawals 7,000
    404 Service Revenue 44,000
    612 Depreciation Expense- Equipment 3,000
    622 Salaries expense 22,000
    637 Insurance expense 2,500
    640 Rent Expense 3,400
    652 Supplies Expense 2,200

    Totals 99,100 99,100
  • Oct 15, 2008, 02:41 PM
    pready

    You need to close the Owner's Drawing Account, the Revenue aoounts and the Expense Accounts.

    The difference between the Revenues and expenses is known as retained earnings and is a part of the owner's equity.
  • Mar 29, 2009, 08:06 PM
    betty23
    Which of the following accounts woul not appear in th epos-closing trial balance?
  • Mar 30, 2009, 10:10 AM
    pready

    Only your balance sheet accounts will appear in a post-closing trial balance because they are permanent accounts.
  • Apr 9, 2009, 01:22 AM
    rammohan1010

    How to close the accounts in tally 9
  • Apr 9, 2009, 12:05 PM
    pready

    First you close your revenue, so you do the following journal entry:
    Debit your Revenue Accounts for their amounts
    Credit Income Summary Account for the amount of the debits

    Next you will close out your Expense Accounts, by doing the following journal entry:
    Debit Income Summary Account for the amount of the credits
    Credit your Expense accounts for their individual amounts

    Finally you clos out your Income summary account to the Retained Eranings Account, by the following journal entry:
    Debit or Credit your Retained Earnings Account for the amount
    Credit or Debit the Income summary Account for the difference in the Income summary Account account to zero balance the account.

    To close your drawing account you will Debit the Owners Equity account for the amount in the drawing account and you will Credit the Drawing account for the amount in the account.

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