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-   -   Post-Closing Trial Balance totals differ (https://www.askmehelpdesk.com/showthread.php?t=183011)

  • Feb 11, 2008, 04:48 PM
    ARSANZ7
    Post-Closing Trial Balance totals differ
    Cash Debit $150,000
    Accounts Receivable Debit 150,000
    Allowance for Doubtful Accounts Debit 20,000
    Equipment Debit 720,000
    Accumulated Depreciation--Equipment Credit $200,000
    Accounts Payable Credit 160,000
    Bonds Payable Credit 500,000
    Common Stock Credit 60,000
    Retained Earnings Credit 130,000

    I get these totals = 1,040,000 1,050,000

    I don't know why am I getting different totals because they should equal.
  • Feb 11, 2008, 10:22 PM
    morgaine300
    Well, you have at least two problems. One is that Allowance for Doubtful Accounts is a credit. That's a contra asset which reduces the balance of the receivables.

    That makes you even more off though. That's not a bad thing. The balances can go back and forth as you correct them and being "more off" doesn't mean anything. Because making the correction is putting you one step closer.

    There's no way to know why this doesn't balance anymore without seeing where the balances were prior to closing and seeing the closing itself. No one can just know what number in here is wrong. A common error that comes to mind, however, is that you are using an old Retained Earnings number instead of the end-of-year one that should have been updated during the closing. Check that first.

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