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

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.

Which of the following accounts woul not appear in th epos-closing trial balance?

Only your balance sheet accounts will appear in a post-closing trial balance because they are permanent accounts.

How to close the accounts in tally 9

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.