Lesson 21

CLOSING ENTRIES, POST-CLOSING, TRIAL BALANCE AND

REVERSING ENTRIES

Good day everyone! Today we're going to discuss the closing entries. We're done with the rest of
the process in the accounting cycle. So, we have only remaining two process: the closing process and the
reversing process. The reversing process is optional but this um closing process is necessary so that the
books of accounts will be prepared for the next accounting period. So dun tayo sa principle of periodicity
that the life of a business is indefinite but it is cut into um periods so that the results of operations can be
determined on a period basis. So, after the, each period we have to make the closing process or we have
to perform the closing process. So, what is closing process? So, we open the books at the beginning of the
year and then we close it at the end of the year or it could be we open the books at the beginning of the
period and we end it at the end of the period.

So, what is the closing process? Closing process is merely the steps required to prepare accounts
for financial statement preparation and is the start of the new or next accounting period. The closing
process consists of steps to transfer temporary account balances to permanent accounts and make the
general ledger ready for the next accounting period. Anong ibig sabihin noon? So yung mga, nag-open
tayo ng mga accounts cash, accounts receivable, notes receivable, asset accounts, liabilities accounts, dun
sa capital accounts meron tayong revenue and expense account na inopen. So, ang target natin is to
maintain permanent account, asset, liability, and capital eh pero meron drawings, meron tayong expenses,
meron tayong revenue. Hindi na ito dapat maiforward sa next accounting period because these items
belong to the current period. What are you going to do with this? You are going to make this account zero
and the difference in these accounts will be added to the capital account. So that there will no more be
expense and revenue accounts and drawing accounts in the next accounting period. Yun lang naman ang
ibig sabihin ng closing process, Inopen mo yung revenue account, expense account, and drawing account
for the current period. Hindi mo yan pwedeng ipasa sa next accounting period. So, before the start of the
next accounting period, icoclose mo siya para yung susunod na accounting period ang marerecord lang
dun ay ang expense, revenue and drawings of that accounting period. Pano mo icoclose? Gagawin mong
zero lahat, so kung nakadebit siya nung una, gawin mong credit para maging zero. Kung nakacredit siya
nung una, gawin mong debit para maging zero.

What does closing or accounting closing process means? The closing process consists of three
main steps. First identify temporary accounts that need to be closed then record the closing entries then
prepare the post-closing trial balance. Remember niyo yung mga trial balance na ginawa natin along the
way. Nung una wala pa tayong trial balance after recording the external transactions nagkaroon na tayo
ng trial balance, yung yung unadjusted trial balance. Then we made the adjustments, and we came up
with the adjusted trial balance. So. we have two trial balances na, now after the closing process,
magkakaroon tayo ng pangatlong trial balance and that is the post-closing trial balance which is similar to
the balance sheet. Because wala ng expense and revenue accounts.
Since income statement account record current year activity, they must be zeroed out or closed at
the end of each accounting period. This way, they will have a zero balance for the start of the next
accounting period and only current balances will exist in these accounts. In order to achieve this, closing
entries must be made to transfer the ending in income statement balances to balance sheet accounts. So,
yung mga income statement balances ililipat natin sa balance sheet accounts. So, anu-ano ba yung mga
income statement balances, revenue, expense, yun yung nasa income statement natin. Yung drawing hindi
part ng income statement pero it has to be closed to the capital directly. Itong income statement balances,
yung revenue and expenses it has to be closed first to the income summary account para malaman natin
Lesson 21
CLOSING ENTRIES, POST-CLOSING, TRIAL BALANCE AND
REVERSING ENTRIES

ano yung difference. Yung difference na yun, yun ang ilalagay natin sa capital account, yung drawing
diretso na natin ialalagay o ibabawas sa capital natin.
Closing entries also called closing journal entries, are entries made at the end of the accounting
period to zero out all temporary accounts and transfer their balances to permanent accounts. In other
words, the temporary accounts are closed or reset at the end of the year. Here ang sabi eh also called
journal closing entries, remember nung gumagawa tayo ng worksheet, may mga entries tayo na ginagawa
dun pero hindi yun part ng process, yung mga entries nayun sa worksheet, scratch lang yun yung
worksheet. So, to make it a part of the process it has to be in the journal. So yung closing entries natin dun
sa worksheet eh hindi yun official process, scratch lang yun. To make it formal ilalagay natin yan sa
books of accounts, which is the journal book and ledger. Now natatandaan niyo ba yung ginawa natin sa
process na din sa worksheet yung una ay pinprepare natin yung trial balance or unadjusted trial balance.

First, we prepared the adjusted trial balance, then we made the adjusting entries dun sa
worksheet. And then we prepared the adjusted trial balance. After the adjusted trial balance, we have the
closing entry, then after the closing entries we prepared the post-closing trial balance. After the post-
closing trial balance, we prepare the financial statements, we have the income statements and balance
sheets. Now, dun sa worksheet natin ganun yung arrangement, pero dun sa process natin hindi, gagawa na
muna tayo ng financial statement bago tayo gumawa ng closing entry sa journal and ledger. Bakit? Dun
sa proseso, makikita mo kaagad, dun sa worksheet makikita mo kaagad yung process ng pagkakaroon ng
unadjusted trial balance, trial balance, and post-closing trial balance. Pero hindi mo muna marecord kagad
yung closing entries mo to come up with the post-closing trial balance kasi di ka pa sure dun sa financial
satements mo. Di mo pa alam kung papasa na yung financial statements mo sa regulatory bodies. So,
kunwari nagsubmit ka na ng financial statements mo at okay na wala ng problema, you go back to the
books of accounts to record the closing entries para sure ka na na yung closing entries mo ay tama na.
Wala ka nang masayadong adjutsments, yung yung purpose nun. Pero yung logical sequence nang
paggawa is trial balance, unadjusted trial balance, adjusted trial balance, post-closing trial balance, then
financial statements. Yun yung logical sequence kung walang error, wala kang, perfect talaga yung
gagawin mo kung walang error, perfect talaga yung gagawin mo, but considering na maraming
adjustments kahit nakagawa ka na ng financial statements marami pa ring adjustments. It is wiser to delay
the recording of the closing entries to the books of accounts until na finalize mona talaga ‘yung financial
statements mo.
At the end of each year the revenue and expense account balances are transferred to the income
summary accounts, ‘yun ‘yung sinabi ko kanina, this way all of the revenue and expense accounts will
have a zero balance at the end of the year and will start the next year, fresh with no prior activity. The
income summary account balance is then transferred to the retained earnings or capital accounts
depending on what type of entity the business is. So, magc-create tayo ng temporary closing account, ito
yung tinatawag na income summary account.
Sa income summary account, doon natin ilalagay lahat ng revenue at expenses at ang difference
nung income summary account na ‘yun, ‘yun ang ilalagay natin sa capital account. So remember, it is a
temporary clearing account, hindi siya bahagi ng financial statement, nagiging bahagi lang siya ng libro,
books of accounts at the end of the accounting period for the purpose of getting the difference between
revenue and expenses yun yung purpose niya, ma determine kung ano ang revenue or paano ang resulta
ng revenue at expenses, net income ba yan or net loss? After madetermine kung net income or net loss
‘yan, ‘yung resulta ay ilalagay sa capital account, it is either added to or deducted from the capital
Lesson 21
CLOSING ENTRIES, POST-CLOSING, TRIAL BALANCE AND
REVERSING ENTRIES

account. Kung net income ‘yan it will be added to the capital account, if it is net loss, then that will be
deducted from capital account. So ang capital account natin for sole proprietorship ay name of the owner
and capital, sa partnership name of the owners then capital, pagdating sa corporation it will be retained
earnings so doon sa retained earning account ia-add or idededuct ang resulta ng income summary. After
the closing entries have been made and all the temporary accounts have been closed, a post-closing trial
balance is prepared. A post- closing trial balance is a listing of all the accounts with balances that will
carry forward to the next accounting period. Since the income statement accounts do not have balances
anymore, you can think of this as an opening balance sheet for the next accounting period. So ‘yung,
imagine in niyo nalang ‘yung balance sheet niyo ginawa nyong trial balance, ‘yun na yung post-closing
trial balance, kasi lahat na ng expense and revenue items ay tinanggal na doon sa trial balance mo so
anong matitira? Asset, liabilities and capital. Eh ano ba yung asset liabilities and capital? Edi balance
sheet.
So, types of closing entry. Temporary accounts can either be closed directly to the retained
earnings account to an intermediate account called the income summary account. The income summary
account is then closed to the retained earnings account, both ways have their advantages. Closing of
temporary accounts to the income summary account leaves an audit trail or accountants to follow the total
of the income summary accounts after the old temporary accounts have been closed should be equal to the
net income for the period. Pwedeng diretso na pala, diretso na sa retained earnings or capital account.
Kaya lang ‘pag diretso na sa retained earning at capital account parang wala kang summary ng current
operations, so mas maganda kung meron ka munang income summary account para makita mo na muna
yung resulta ng operation for the current period bago mo isama doon sa retained earning account or sa
capital account.
Okay, we have this illustration, in this illustration we will close terimacor to hindi to macorals.
So, we’ll close Terimacor Drug Store again, our problem is about Terimacor Drug Store, so we will close
Terimacor’s Temporary Accounts using the Income Summary Method. There are three general closing
entries that must be made. First, closing all revenue and gain accounts. All of Terimacor’s revenue or
income accounts are debited and credited to the income summary account. Parang magulo, closing all the
revenue and gains account, all of Terimacor’s revenue or income accounts are debited—ohhh okay, the
accounts, each individual account on the revenues will be debited to make it zero kasi dati ‘yan ano ba
ang entrada natin kapag nagrerecord tayo ng revenue, debit cash or accounts receivable, credit revenue so
at the end of the period, ang revenue mo naka credit so at the closing period dapat idebit mo ‘yon para
maging zero kapag naka credit gusto mo maging zero edi idebit mo. So, we are going to debit all the
revenue accounts and anong ice credit natin? The income summary account. So the entry will be a debit
to revenue and a credit to the income summary account.
Remember that all revenue, sales, income and gain accounts are closed in the process so
Terimacor’s business has a few accounts to close. Let’s take for example, eto yung ng mga accounts ng
Terimacor, so all expense accounts are then closed to the income summary account, eto ‘yung expense ng
Terimacor so we’ll go to expense accounts, lahat ng expense ang original entry ay debit so to make it
zero, we have to credit it. So eto nga lahat ng expense nakacredit, oh, ngayon ano ang debit natin? Income
summary. So dun sa income summary meron na dalawang entrada, meron na tayong income summary
account diba, meron tayong income summary, meron tayong entrada kanina na revenue at ngayon meron
tayong entradang expenses so what will be left will be the net income or net loss. Now, kung ano ‘yung
difference nito, whether debit or credit ay icoclose natin sa retained earning account kung corporation,
Lesson 21
CLOSING ENTRIES, POST-CLOSING, TRIAL BALANCE AND
REVERSING ENTRIES

capital account kung sole proprietorship and partner. Now close all the dividend or withdrawal accounts
since dividend and withdrawal accounts are not income statement accounts, they do not typically use the
income summary account, this accounts are closed directly to the retained earnings by recording a credit
to the dividend account and credit to retained earnings, dividend account ang nakacredit, debit na yung
retained earnings, kasi ung retained earnings, etong dividend nung inentrada natin debit dividends credit
cash eh part yan ng capital. Hindi siya asset, hindi siya liabilities, hindi rin siya expense pero deduction
siya sa capital.
Pero deduction siya sa capital so i-close din natin siya kasi pakalat-kalat siya dapat mag mag stick
tayo sa asset is equal to liabilities plus capital eto yung target natin sa uh closing entries eh gawin mo ulit
basic accounting equation eh diba dun sa process natin kapag nag operate ka where capital is beginning to
additional capital plus revenue minus expenses minus drawing yan yung magiging extension kapag nag
operate ka diba so pagka mag-close ka na kapag end of the period na buburahin mon a tong extension na
to ililipat mo lahat dito sa capital para maging asset equals liabilities plus capital ka ulit for the next
accounting period.
So, after that we prepare the post-closing trial balance tatanggalin natin lahat yung mga expenses,
revenue and dividends and withdrawals. The post-closing trial balance is a list of all accounts and their
balances after the closing entries have been journalized and posted to the ledger in other words the post-
closing trial balance is a list of accounts of permanent account or of permanent accounts is a list of
permanent accounts that has still to be that is still have balances after closing entries have been made.
Yung mga matitirang mga accounts na permanent. Yun yung mga nakalagay sa post-closing trial balance.
Kaya natin tinatawag na permanent accounts yung mga balance sheet accounts kasi hindi sila kino-close
or hindi sila affected ng closing process. Tinatawag nating temporary account yung mga expenses and
capital and withdrawals and dividends kasi they are taken away by the closing process Nabubura sila ng
closing process. The post-closing trial balance is identical to the accounts presented on the balance sheet.
This make sense because all of the income statement accounts have been closed and no longer have a
current balance.
The purpose of preparing the post-closing trial balance is to verify that all accounts have been
closed properly and the total debits and credits in the accounting system equal after the closing entries
have been made. So kailangan ng post-closing trial balance para ma-test yung debit and credit ng ating
mga natitirang accounts.
So, the format in preparing post-closing trial balance is the same as the other trial balances in the
accounting cycle displaying in three columns a column for account names debits and credits since only
balance sheet accounts are listed on this trial balance. They are presented in balance sheet order starting
with asset liabilities and ending with equity. As with the unadjusted and adjusted trial balances, both the
debit and credit columns are calculated at the bottom of a trial balance. If these columns aren’t equal, the
trial balance was prepared incorrectly or the closing entries weren’t transferred to the ledger accounts
accurately. As with all financial reports, trial balances are always prepared with a heading. So eto yung
ating illustration yung bicycle rental ng Terimacor So this is the post-closing trial of Terimacor bicycle
rental business. So we have the cash now take note of the accounts that remained. Accounts receivable,
prepaid expenses, computer equipment, these are assets. Then we have accumulated depreciation, contra-
asset. We have the accrued expenses payable, loans payable, income tax payable. So we have the
liabilities and then we have the Terimacor capital so this capital. So the revenue and expenses and
drawing are no longer included in the post-closing trial balance. So here is the presentation of the balance
Lesson 21
CLOSING ENTRIES, POST-CLOSING, TRIAL BALANCE AND
REVERSING ENTRIES

sheet and the post-closing trial balance. Pareho lang cash, eto yung cash, Accounts receivable, Prepaid
expenses, so computer equipment, Accumulated depreciation, Accrued expense, Loans payable, Income
tax payable. So we have different balance here. We have this missing balance here. No we have a
different balance here.
Its not the same balance because the accumulated uh the accumulated depreciation is presented in
the credit side there but in the balance sheet it is presented in the right side already so its not uh we don’t
have the same balances with the trial uh trial balance and the balance sheet have no the same total balance
because the accumulated depreciation is presented in the asset while here in or in the debit while here the
accumulated depreciation is presented on the credit side so these are the accounts in the post link closing
trial balance and these are the accounts in the balance sheet which is which are perfectly similar because
the data coming from the post-closing trial balance are the data used in preparation of the balance sheet.
So na-close na. Irereverse naman. Lahat ba i-rereverse natin. Ano ibig-sabihin ng closing entry. 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. So na-close na natin lahat ngayon mag re-reversing entry tayo. It is commonly used in situations
where either revenue or expenses were accrued. In the preceding period and the accountant does not want
the accruals to remain in the accounting system for another period. So may option din naman yung
accountant uh
So reversing entries are not mandatory entries it depends dun sa accountant kung gusto nya ba
kung kaya nya ba mag shift from accrual uhm mag shift dun sa system kasi merong method of recording
accrual account in accrual accounting merong method of recording expenses merong tinatawag na
expense method and asset method sa revenue naman merong revenue method at liability method. So kung
gusto ba ng accountant na i-consistenly follow yung yung method na yun form one accounting period to
another accounting period kung gusto nya i-follow yun consistently then kailangan nya ng reversing
entries. Pero kung ok lang naman sa kanya na mag calculate everytime na magkakaroon ng adjustment to
conform with the old with the consistency of the methos you may do so. Kasi sa initial sa January lang
transaction lang naman yan. Or first first month of the year transaction lang naman magkakaroon ng
adjustment kasi ang irereverse lang naman dito ay yung mga inadjust noong last year or at the end of the
period. What are reversing entries and why are they used. Reversing entries are made on the first day of
an accounting period
On the first day of an accounting period, to remove accrual adjusting entries that were made at the
end of the previous accounting period. Two benefits of using reversing entries; it greatly reduces the
chance of double counting revenues or expenses, it allows for more efficient processing of actual
invoices that will be processed processed in the new accounting period, hindi ka na maghahanap hanap pa
sa libro, alin ba dapat irecord. So, ano yung irereverse natin? Yung mg adjusting entries natin on revenue
and expenses using accrual method in theprevious, ah because of the accrual method in recording
transaction. Kasi nag-aadjust tayo, wala pa yung icome, wala pa yung cash, di pa natin naibigay yung
cash. Wala pa yung cash nirerecognize na natin yung income, hindi pa natin naibibgay yung cash,
nirerecognize na natin yung expense. So, meron tayong mga adjustments sa mga expenses at income na it
at the end of accounting period. In adherence on the accrual basis of accounting principle. Ngayon
irereverse natin yan, kasi hindi pa naman talaga natin income at hindi pa natin talaga expense kasi sa
susunod na period, mag iisue tayo ng resibo para dun sa income na nirecord na antin at the end of the last
accounting period, eh magreresibo tayo uli. First time natin magreresibo pero narecord na natin income
Lesson 21
CLOSING ENTRIES, POST-CLOSING, TRIAL BALANCE AND
REVERSING ENTRIES

nun. So, ano gagawin natin? So, ireverse natin yung adjusting entry natin, para pag record natin ng resibo
ngayon, ang marereflect lang ay yung inc, yung cash, na natanggap natin hindi kasama yung income doon
sa cash.
So, to illustrate the reversing entries, let's assume that a, retailer Macorals uses a temporary
employment agency's service to provide workers from January 15 to December 29 . The temporary
employment agency Terimacor will bill Macorals on January 6 and she is required to pay invoice by
January 10th assuming that Macorals’ accounting year ends on December 31 then she will make an
accrual adjusting entry on December 31 for the estimated amount. So, yung December 15 to 29
marereceive yun ng January 6, at magpe- prepare ng invoice yung Terimacor on January 10. Kelan yun
mababyaran? Next year na, January 10. So, December 15 to 29 hindi makakatanggap ng resibo yung
Macorals from Terimacor. Ano ngayon yung gagawin ng Macorals? Mag-aano na sya, gagawa na sya ng
adjusting entry to recognize the expense, kasi expense nay un eh, hindi pa nga lang natatanggap yung bill
at nababayaran so on December 15-29, magkakaroon nay an ng adjusting entry for the estimated amount,
so if the estimated amount is eighteen thousand, the Macoral Macorals will debit agency service expense
for eighteen thousand with credit accrued expense payable for eighteen thousand. Wala pa yung resibo,
hindi pa nababayaran, nirerecognize na natin yung expense, during the adjusting period, on the previous
year, so nakarecord nay an sa libro natin. So, this debit agency service expense 18 000 and credit
accounts payable, this adjusting entry ensures that the Macros income statement for the period ended
December 31 will report the 18 000 expense and its balance sheet as of December 31 will report a liability
after the financial statements are prepared the closing entries will transfer the balance to the account
service agency expense to an owner's or stockholders equity account as a result, the account agency
expense will begin January with a zero balance, so pinasok kasi natin lahat ng expense sa income
summary, kinredit na 18 000 ang expense. So, um when a reversing entry is recorded as of January 1, it
simply removes the estimated amounts contained in December 31 accrual adjusting entry, so, eto yung
adjusting entry natin before post-closing trial balance, so meron tayong adjusting entry na debit expense
credit accrued expense payable. Pano mo ngayon yan irereverse? Babaliktarin mo lang si raw, dedebit mo
ngayon yung accounts payable at iccredit mo yung expense. So parang binura mo lang yung transaction.
Pero ito, itong 18,000 na to, part na to ng income summary for the last period, naging bahagi na sya ng
income statement, narecognize na sya as expense on December prior year. Ngayon, ang irerecord mo na
lang kasi ngayon ay ang payment. So, ang payament bahagi yan ng current year, pero yung expense,
bahagi nung nakaraan na year. So, to do that, ireverse mo sya para nirecord mo lang yung income, ah
nirecord mo lang yung expense, prior year at ang nirecord mo ngayon ay ang cash payment lang.
When the Terimacor’s invoice dated January 6 arrives Macorals, the retailer can simply debit the
invoice amount to agency servoice expense and credit accounts payable. The receipt of actual invoice of
18,000 will change from a credit balance of 18,000 agency service expense to a balance of 0. Zero is the
correct expense for the new accounting period, since the 18,000 had been reported as an expense in the
previous accounting period. So, itong 16 na to at itong accounts payable na to in transaction last year.
Tapos nireverse mo, ginawa mong, debit accounts payable, credit expense na yung reversing period. Iyo,
pumasok na to sa income ng December. Ito part pa ito ng balance sheet account. Ngayon, nagbayad na
ang Macorals at ito ang entrada, debit expense and credit cash, itong cash, totoong lumabas 18,000 pero
itong expense na to, hindi na to marerecord na expense for the current period, kasi nireverse mo na yan
eh, nag credit ka ng expense na 18,000. So pag debit mo na expense ng 18,000, zero nay un. Wala kang
nakarecord na expense for the current period kase crinedit mo ito bago mo lagyan ng debit so zero ang
epekto. So ito illustration natin, with reversing entry, pwedeng walang reversing entry eh, kasi iaadjust
Lesson 21
CLOSING ENTRIES, POST-CLOSING, TRIAL BALANCE AND
REVERSING ENTRIES

mo lang naman yung entrada mo. With Revesing entry ang entrada mo ay expense, ito yung adjusting
entry muna, adjusting antry, debit expense, credit, accounst payable.
Nag-Closing netry tayo, zinero Pero yung accounts payable ‘di naman part ng closing process so
nilagay na natin ‘to sa income statement. Now, so anong natira? Yung credit d’on sa accounts payable,
kasi hindi naman siya kasama sa closing process.
Now, nireverse naman natin. So n’ong nireverse naten, dinebit natin yung adjusting entry natin,
binaligtad natin. Debit expense, credit accounts payable. Nireverse natin, ito dinebit natin. Meaning to
say, ito zinero natin ‘to during the period, at the beginning of the period at cinredit natin yung expense. So
nakacredit yung expense, so wala ka nang nakarecord na accounts payable, kasi nareverse mo na. Wala ka
na rin nakarecord na expense dahil sa reversing entries. Ngayon nagbayad, so nagbayad, ang debit mo ay
expense pa rin. Pero zero na siya dahil narecord mo na n’on. And credit sa cash kasi wala ka nang
accounts payable na irerecord dahil narecord mo na sa reversing entry. So ang magiging credit mo ay
cash na, wala ka na dito sa accounts payable dahil hindi na nakarecord as current yung accounts payable
mo because of the reversing entry. So tama na. Nadebit mo yung expense, ahh, nadebit mo yung expense
pero walang epekto dahil nareverse mo, at cinredit mo yung cash. Wala kang irerecord sa payable kasi
nareverse mo na siya.
So without reversing entry icacalculate mo ngayon, kasi naka ano eh, nakapasok pa yung
adjusting entry mo eh. Ito yung adjusting entry mo, Ito yung closing entry mo. So, kung wala kang
reversing entry, anong gagawin mo? Wala kang entry sa expense kasi di mo nareverse eh. Sa accounts
payable mo magkakaroon ka ng entrada, kase yung accounts payable mo naiwan eh. Debit expense, credit
accounts payable. So merong accounts payable ka na naka-entrada, pero ito naclose mo na eh, wala nang
natira so zero na ‘to. Hindi mo nareverse so adjusting entry mo, closing entry, zero na siya. Ano pa
eentrada mo dito kung nazero na siya? So, no entry ka rito sa expense account mo. Pero sa accounts
payable mo, hindi mo nireverse, meron kang credit. So pag entrada mo ano gagawin mong entrada? Debit
accounts payable, sorry, so ano magiging entrada mo? Debit accounts payable, credit cash. Y’on ang
magiging entrada mo. Instead na expense ang idedebit mo, magiging accounts payable na. Dahil ang
natirang account na naka-open ay accounts payable.
So yun lang yung, yung ahh, pagkakaiba ng nagreverse ka at hindi ka nagreverse. Sa nagreverse
ka, ang entrada mo debit expense and credit cash. Kase nareverse mo na yung accounts payable mo,
nazero mo na y’on eh. Pero kung di ka nagreverse, ang debit mo ay accounts payable at credit sa cash.
Pareho mo naman mairerecord yung dalawang transaction na y’on at pareho lang din ang epekto, kaya
lang mag-iisip ka pa don sa wala kang reversing entries. Pero kung consistent kase eh, dapat kung
nagbabayad ka ng expense, expense method yung gamit mo, debit ka lang ng debit sa expense. Eh kaso
ito magbabayad ka, iisipin mo expense ba yan o accounts payable. Kasi di ka nagreverse eh. Pero pag
nagreverse ka, every year nagrereverse ka, nasa utak mo na y’on bilang accountant na palaging ganon na
yung entrada mo at the beginning of the accounting period. Hindi ka na mag-iisip pa, hindi ka na babalik
sa resibo mo.
So that winds up our discussion on closing entries and reversing entries. And that ends the whole
accounting cycle na sinimulan natin sa source document, and then nag-end sa closing entries, at sinimulan
muli sa reversing entries. Kung may natutunan kayo sa mga videos na ito or presentation na ito, please
like and subscribe my channel. At mayr’on pa tayong ibang pag-uusapan, itatagalize natin yung ibang
Lesson 21
CLOSING ENTRIES, POST-CLOSING, TRIAL BALANCE AND
REVERSING ENTRIES

nasa mga english format na video presentation natin. And we’re going to talk about income taxation and
partnership and corporation in the future, isa-isahin natin.
So these are the three items that I’m going to share with my viewers. I’m done with basic
accounting, the next one will be partnership and corporation, and income taxation. Individual income
taxation muna ang ididiscuss natin dito. So, invite everyone who are interested in learning accounting
and income taxation to subscribe and like my channel. God bless everyone, keep safe!
Thank you, St. Augustine, for guiding me in preparing this presentation and thank you to all those
who made this presentation possible. Special thanks go to my students in PUP, who helped me prepare
this special, this uhm presentation. Special thanks go to the following students: Bea Jeanina Bantigue,
Maxine Alain Ong, Irene Gonzales, and Jaymark Falleria, all from PUP. Thank you guys, this is the
dream that I have when you were my student and you help me realized this dream. So thank you very
much! Nakakatulong, nakatulong tayong lahat sa ibang mga estudyante o mga taong nangangailangan ng
presentation na ito. God bless and good luck to your journey as BA students. Sana maging cpa kayo,
thank you!