Preparing a Post Closing Trial Balance
The last step in the accounting cycle is preparing a trial balance after the closing entries have been posted. The purpose of the post closing trial balance is to make sure that the ledger is in balance at the beginning of the next period.
The accounts and amounts in the ledger should agree exactly with the accounts and amounts listed in the balance sheet at the end of the period. The process that begins with analyzing and journalizing transactions, and ends with the post closing trial balance is called an accounting cycle. The most important output of the accounting cycle are the financial statements.
The image below illustrates the Trial Balance of Dimensions Manufacturing Unit:
