The Mechanism of Prepare Closing Entries and a Post-Closing Trial Balance

Abstract

A company must have very clear records. Therefore, financial reports must be made carefully and precisely. So that the company can assess the company's performance during the previous period and take into account the company's next steps. To find out what steps will be taken in the next period, the company must record the closing journal and trial balance after closing. Companies can record and keep closing journals and manage them properly so that they become appropriate company financial statements. Closing entries are made to present the actual (real) financial information of a company after closing the books. After the journal is posted to the general ledger, the company will make a closing trial balance. Thus the company will know what the company's assets are and where the source of the company's funding comes from. In addition, the trial balance after closing is also useful for maintaining and ensuring that the calculations in the general ledger are balanced or not. Through the method of observation and literature study, the author will create a mechanism for making closing journals and a trial balance after closing.