What I Know
A post-closing trial balance
is a report that is run to
verify that all temporary
accounts have been
closed and their beginning
balance reset to zero.
A reversing entry is a
journal entry made in an
accounting period, which
reverses selected entries
made in the immediately
preceding period. The
reversing entry typically
occurs at the beginning of
an accounting period.
Questions: What I Learned
What is post-closing trial I learned that a post-
balance? closing trial balance is the
final trial balance prepared
before the new accounting
period begins. Used to
make sure that beginning
balances are correct, the
post-closing trial balance is
also used to ensure that
debits and credits remain
in balance after closing
entries have been
completed. And the
purpose of closing entries
is to close all temporary
accounts and adjust the
balances of real accounts
such as owner’s capital.
Like all of your trial
balances, the post-closing
balance of debits and
credits must match.
What is reversing entry? First, I lerned that a
reversing entry is an
optional journal entry that
is recorded at the
beginning of an accounting
period to undo the prior
period’s adjusting entries.
In other words, these
entries cancel out or
reverse the adjusting
journal entries recorded at
the end of the prior
accounting period.
Second, The purpose of
recording reversing entries
is clear out the prepaid and
accrual entries from the
prior period, so that
transactions in the current
period can be recorded
normally. Since
GAAP(General Accepted

The difference between
closing entries and
reversing entry is that,
Closing Entries are used
to close the books. These
entries "close" the
"temporary accounts"
against "permanent
accounts." For example,
income statement account
balances would be
transferred to retained
earnings. This effectively
zeroes out the income
statement account
balances so that you are
starting from scratch to
begin the new year. On the
other hand, Reversing
Entries are made in the
next period (usually on the
first day of the next period,
such as January 1). They
reverse adjusting entries
made at the end of the last
period. period.
Accounting Principles) and
the accrual basis of
accounting requires that
revenues and expenses be
matched in the periods in
which they occur, accrual
journal entries are
recorded at the end of
each period.
What is the difference I learned to distinguished
between closing and closing entries from
reversing entry? reversing entries. In
addition to this, I also
learned that not all
adjusting entries are
reversed in subsequent
periods though. “Accruals”
are an example of a type
of adjusting entry that are
pretty much always
reversed in the following
period. For example, if a
company shipped a
product before year-end
but didn’t have time to
send out an invoice before
year-end, it would “accrue”
the revenue at year-end to
get the revenue in the
proper period. However,
then it would need to
reverse the accrual in the
next period when the
invoice will be entered into
the accounting system and
sent out. This is because
the invoice will be coded to
credit revenue (and debit
A/R), and if you didn’t
reverse the accrual from
the prior period, then the
revenue would have been
recorded twice – once in
the prior period and again
in the current .