I thought a post closing trial balance is when you list all your accounts and their credit/debit amount and then debits should match credits. When I do this they do not match. Is there something Im doing wrong?
Cash in bank 4000
Accts Reciev 500
Accts Payable 4000
Joy Capital 7000
Joy Withdrawl 3000
Misc Expense 3000
Utilities Exp 1500
Total 12,000 11,000
Based on the given information, it appears that your debits and credits do not match in the post-closing trial balance. The post-closing trial balance is prepared after the closing entries have been made at the end of an accounting period. It is a list of all the accounts in your general ledger with their debit or credit balance.
To ensure the debits and credits match in the post-closing trial balance, you need to follow these steps:
1. Review your transactions: Double-check that all transactions have been properly recorded in the general ledger. Ensure that all entries have the correct debit and credit amounts. Review the journal entries and any supporting documentation to make sure they are accurate.
2. Check for errors: Look for any data entry errors or mistakes in your calculations. Ensure that you have correctly recorded the amounts in the right accounts. Also, verify that you have assigned the appropriate debit or credit to each account.
3. Check for missing entries: Make sure you haven't missed any transactions or journal entries while preparing the trial balance. Ensure that all transactions have been recorded and included in the trial balance.
4. Verify opening balances: Check the opening balances of each account to ensure they are correctly carried forward from the previous accounting period.
5. Review the closing entries: Verify that the closing entries have been properly made. These entries transfer the balances of temporary accounts (such as revenue and expense accounts) to the retained earnings or capital account, and their balances should be zero at the start of a new accounting period.
In your specific example, let's analyze the balances:
Debits:
- Cash in bank: $4,000
- Accounts Receivable: $500
- Joy Capital: $7,000
- Misc Expense: $3,000
- Utilities Expense: $1,500
Total debits = $4,000 + $500 + $7,000 + $3,000 + $1,500 = $16,000
Credits:
- Accounts Payable: $4,000
- Joy Withdrawal: $3,000
Total credits = $4,000 + $3,000 = $7,000
According to the information you provided, the debits total $16,000, while the credits total only $7,000. This discrepancy indicates that there might be errors in your entries, or possibly some transactions or accounts have been missed.
To resolve the issue, I recommend carefully reviewing each transaction, ensuring that all entries are correctly recorded with the appropriate debit and credit amounts. Check for any overlooked transactions or accounts.
By following these steps and meticulously reviewing your records, you should be able to identify and correct any errors that are causing the imbalance in your post-closing trial balance.