OST

Fundamentals of
SENIOR
Accountancy, Business HIGH
and Management 1 (FABM 1) SCHOOL

Self-Learning

Preparing of Module

5
Post Closing Trial Balance
666
Quarter 4
Fundamentals of Accountancy, Business and Management 1
Quarter 4 – Self-Learning Module 4: Preparing of Post-Closing Trial Balance
First Edition, 2020

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 Fundamentals of
SENIOR
Accountancy, Business HIGH
and Management 1 SCHOOL

(FABM 1)

Self-Learning

Preparing of
Module

5
Post-Closing Trial Balance
12
Quarter 4
Introductory Message
For the facilitator:

Welcome to the Senior High School – Fundamentals of Accountancy, Business

and Management 1 Quarter 4 Self Learning Module on Preparing of Post-Closing
Trial Balance!

This Self-Learning Module was collaboratively designed, developed and

reviewed by educators from the Schools Division Office of Pasig City headed by its
Officer-in-Charge Schools Division Superintendent, Ma. Evalou Concepcion A.
Agustin, in partnership with the City Government of Pasig through its mayor,
Honorable Victor Ma. Regis N. Sotto. The writers utilized the standards set by the K
to 12 Curriculum using the Most Essential Learning Competencies (MELC) in
developing this instructional resource.

This learning material hopes to engage the learners in guided and independent
learning activities at their own pace and time. Further, this also aims to help learners
acquire the needed 21st century skills especially the 5 Cs, namely: Communication,
Collaboration, Creativity, Critical Thinking, and Character while taking into
consideration their needs and circumstances.

In addition to the material in the main text, you will also see this box in the
body of the module:

Notes to the Teacher

This contains helpful tips or strategies that
will help you in guiding the learners.

As a facilitator you are expected to orient the learners on how to use this
module. You also need to keep track of the learners' progress while allowing them to
manage their own learning. Moreover, you are expected to encourage and assist the
learners as they do the tasks included in the module.
For the learner:

Welcome to Fundamentals of Accountancy, Business and Management 1

Quarter 2 Self Learning Module on Preparing of Post-Closing Trial Balance!

This module was designed to provide you with fun and meaningful
opportunities for guided and independent learning at your own pace and time. You
will be enabled to process the contents of the learning material while being an active
learner.

This module has the following parts and corresponding icons:

Expectations - This points to the set of knowledge and skills

that you will learn after completing the module.

Pretest - This measures your prior knowledge about the lesson

at hand.

Recap - This part of the module provides a review of concepts

and skills that you already know about a previous lesson.

Lesson - This section discusses the topic in the module.

Activities - This is a set of activities that you need to perform.

Wrap-Up - This section summarizes the concepts and

application of the lesson.

Valuing - This part integrates a desirable moral value in the

lesson.

Posttest - This measure how much you have learned from the
entire module.
 EXPECTATIONS

After going through this module, you are expected to:

1. define post-closing trial balance;

2. enumerate the accounts that are in the post-closing trial balance;
3. prepare a post-closing trial balance; and
4. understand and appreciate the usefulness of post-closing trial balance.

PRETEST

Directions: Write the correct letter of your answer on the space provided.

_____1. The purpose of the post-closing trial balance is to

a. aid the journalizing and posting of the closing entries.
b. Ensure that the ledger is in balance for completion of the worksheet.
c. Ensure that the ledger is in balance for the start of the next period.
d. Provide the account balances for the preparation of the balance sheet.
_____2. Post-closing trial balance differ is for the adjusted trial balance in that it does
not
a. Include balance sheet accounts.
b. Include income statement accounts
c. Take into account adjusting entries
d. Take into account closing entries
_____3. The post-closing trial balance would not include which of the following
accounts?
a. Accounts Payable
b. Allowance for Doubtful Accounts
c. Owner’s Drawing
d. Unearned Rent Income
For numbers 4-5 Write true if the statement is correct. If it is false write the correct
word or phrases to make the statement correct.
_____ 4. After adjustments and closing entries are made, post-closing trial balance is
prepared to test the equality of the accounts.
_____ 5. Nominal accounts are accounts that reflected in the post-closing trial
balance.
 RECAP
Directions: Fill in the blanks.
1. ____________________ are entries prepared at the end of the accounting
period to bring the balances of the temporary or nominal accounts to zero. A
clearing account called 2._________________ is used. The revenue account
such as Rent Income which has a normal credit balance should be closed on
the 3.____________ side and 4.__________________ to the Income Summary
Account. The 5.___________________account which normally is a debit balance
is credited to close and debited to the capital account to bring a reduction.

LESSON

After closing entries are prepared and posted, posting closing trial balance is
the next step. This is the 9th step in the accounting cycle.

Errors may be committed in preparing the adjustments and closing entries;

hence, it is required to test the equality of the accounts by preparing a new trial
balance which is the post-closing trial balance.
➢ Post-closing trial balance verifies that the debits and credits are
equaled.
➢ Post-closing trial balance contains only real accounts or balance sheet
accounts such as assets, liabilities and ending capital because
nominal accounts are closed.
Carlito Auto Repair Shop
Post-Closing Trial Balance
December 31, 2019

Cash on Hand 25 0 0 0 -
Cash in Bank 45 0 0 0 -
Accounts Receivable 49 0 0 0 -
Allow. for Doubtful Accounts 4 9 0 0-
Prepaid Supplies 2 0 0 -
Interest Receivable 4 5 0 -
Notes Receivable 30 0 0 0 -
Delivery Fees Earned 5 0 0 0 -
Machinery and Equipment 150 0 0 0 -
Accumulated Deprn.-Machi & Equipt. 7 5 0 0-
Furniture and Fixtures 25 0 0 0 -
Accumulated Deprn.-Furnitures & Fix. 2 2 5 0 -
Interest Payable 7 5 0 -
Taxes and Licenses Payable 1 3 0 -
Accounts Payable 26 0 0 0 -
Notes Payable 50 0 0 0 -
Carlito, Capital 238 1 2 0 -
Total 329 6 5 0 - 329 6 5 0 -
 Figure 5.1 Notice that only real accounts are visible in this post-closing trial balance.

Carlito Auto Repair Shop

Post-Closing Trial Balance
Heading
December 31, 2019

Cash on Hand 25 0 0 0 -
Cash in Bank 45 0 0 0 -
Accounts Receivable 49 0 0 0 -
Allow. for Doubtful Accounts 4 9 0 0-
Prepaid Supplies 2 0 0 -
Interest Receivable 4 5 0 -
Assets Notes Receivable 30 0 0 0 -
Delivery Fees Earned 5 0 0 0 -
Machinery and Equipment 150 0 0 0 -
Accumulated Deprn.-Machi & Equipt. 7 5 0 0-
Furniture and Fixtures 25 0 0 0 -
Accumulated Deprn.-Furnitures & Fix. 2 2 5 0 -
Interest Payable 7 5 0 -
Taxes and Licenses Payable 1 3 0 -
Liabilities Accounts Payable 26 0 0 0 -
Notes Payable 50 0 0 0 -
Capital, End Carlito, Capital 238 1 2 0 -
Total 329 6 5 0 - 329 6 5 0 -

Only real accounts or balance sheet accounts are here in this trial balance.
These account balances will be the beginning balances for the next
accounting period.
 ACTIVITIES

Activity 1
Preparing of Post-Closing Trial Balance
Listed below are the accounts taken from the December 31, 2019 adjusted trial
balance of DRA. ABRYL RECTO.

DRA. ABRYL RECTO

Adjusted Trial Balance
December 31, 2019
Cash 1,350,403
Accounts Receivable 205,000
Allowance for Bad Debts 7,550
Prepaid Supplies 11,500
Medical Equipment 1,964,000
Accum. Depreciation-Medical Equipt. 450,131
Vehicle 1,060,000
Accum. Depreciation - Vehicle 336,000
Accounts Payable 43,200
Unearned Professional Fees 47,000
Mortgage Payable 1,230,000
A. Recto, Capital 1,885,555
A. Recto, Drawing 5,000
Professional Fees 800,870
Salary Expense 123,400
Rebt Expense 50,000
Telephone Expense 14,000
Utilities Expense 7,000
Repairs Expense 10,003
Total 4,800,306 4,800,306
 BEAUTY DELIVERY SERVICES
WORKSHEET
Activity 2
December 31, 2019
UNADJUSTED TRIAL BALANCE ADJUSTMENTS ADJUSTED TRIAL BALANCE INCOME STATEMENT BALANCE SHEET

trial balance.
ACCOUNTS DR CR DR CR DR CR DR CR DR CR
Cash 126,800 126,800 126,800
Accounts Receivable 28,200 10,000 38,200 38,200
Supplies 17,800 5,400 12,400 12,400
Prepaid Insurance 38,000 12,000 26,000 26,000
Land 960,000 960,000 960,000
Buildings 1,640,000 1,640,000 1,640,000
Accum. Depreciation- buildings 379,200 10,000 389,200 389,200
Equipment 1,060,000 1,060,000 1,060,000
Accum. Depreciation - equipment 336,000 18,000 354,000 354,000
Accounts Payable 43,200 43,200 43,200
Unearned Delivery Fees 42,000 16,000 26,000 26,000
Mortgage Payable 1,160,000 1,160,000 1,160,000
Beauty, Capital 1,432,600 1,432,600 1,432,600
Delivery Fees Earned 669,200 16,000 695,200 695,200
10,000
Prepare the post-closing trial balance

Salary Expense 173,400 3,600 177,000 177,000

Telephone Expense 2,400 2,400 2,400
Utilities Expense 7,000 7,000 7,000
Repairs Expense 8,600 8,600 8,600
Total 4,062,200 4,062,200

Supplies Expense 5,400 5,400 5,400

Insurance Expense 12,000 12,000 12,000
Depreciation Expense - Building 10,000 10,000 10,000
Depreciation Expense - Equipment 18,000 18,000 18,000
Salary Payable 3,600 3,600 3,600
Interest Expense 4,200 4,200 4,200
Interest Payable 4,200 4,200 4,200
Total 79,200 79,200 4,108,000 4,108,000 244,600 695,200 3,863,400 3,412,800
Net Income - 450,600 450,600
Total 695,200 695,200 3,863,400 3,863,400
This the worksheet of the Beauty Delivery Services. Prepare the post-closing
 WRAP-UP
To summarize what you have learned from the lesson, answer the following
questions:

1. define post-closing trial balance;

2. what are the accounts found in post-closing trial balance; and
3. why it is important to prepare the post-closing trial balance?

VALUING
➢ What are your main takeaways in today’s lesson?
➢ Reflect on the significance of vertical analyses of financial statements.

POSTTEST

Directions: Identify each item below. Write your answer before the item number.
_____1. The entry to close the withdrawal account is
a. Debit Income Summary and credit Owner’s Withdrawal
b. Debit Owner’s Capital and credit Owner’s Withdrawal
c. Debit Owner’s Withdrawal and credit Income Summary
d. Debit Owner’s Withdrawal and credit Owner’s Capital
_____ 2. The purpose of the closing entries is to
a. Bring the temporary accounts to zero
b. Bring the permanent accounts to zero
c. Update the temporary accounts
d. Update the permanent accounts
_____ 3. A clearing account used only at the end of the accounting period to
summarize revenues and expenses for the period
a. Asset Summary
b. Capital Summary
c. Expense summary
d. Income summary

For numbers 4-5 Write TRUE if the statement is correct. If it false write the correct
word or phrase to make the statement true.
_____4. The closing entry for Rent Expense, with a balance of P24,000 is debit Rent
Expense for 24,000 and credit Income Summary for P24,000.
_____ 5. All nominal accounts need to be closed.
 KEY TO CORRECTION

TRUE 5.
24,000
REAL ACCOUNTS 5.
Cr. Rent Expense
TRUE 4. Summary 24,000
C 3. 5. Drawing Dr. Income 4.
A 2. 4. Credited D 3.
C 1. 3. Debit A 2.
2. Income Summary B 1.
PRETEST: 1. Closing entries POSTTEST
RECAP:

References

Ballada, W. 2017. Fundamentals of Accountancy, Business, and Management 1.

VDomDane Publishers.

Banggawan, RB. Asuncion, DJ. 2017. Fundamentals of Accountancy, Business, and

Management 1. Real Excellence Publishing.

Ferrer, RC. Millan, CV. 2017. Fundamentals of Accountancy, Business, and

Management 1. Bandolin Enterprise. San Juan, DA. 2018. Fundamentals
of Accounting. Elmoer Publishing

Rabo, JS. Tugas,FC.Salendrez, HE. 2016. Fundamentals of Accountancy, Business,

and Management 1. Vibal Group Inc.

Manuel, Zenaida Vera-Cruz 18th Edition Accounting Process_Basic Concepts and

Procedures

Epstein, Lita, MBA Bookkeeping Workbook for Dummies. Wiley Publishing, Inc.

Hernane, Milagros B.,et.al 2014. Principles of Accounting. Allen Adrian Books Inc.

Valencia, Edwin G. 4th Edition. Basic Accounting (Concepts, Principles, Procedures and
Applications) . Valencia Educational Supply