Acc 101 Ruby Bagsit

Bookkeeping (part 5)
 1. Recording

Acc 101 presented by RUBY BAGSIT

Transactions

Closing Entries
Post-Closing Trial Balance

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 Acc 101 presented by RUBY BAGSIT
Closing Entries: Types of Accounts
Permanent or Real Accounts
• Asset accounts
• Liability accounts
• Equity accounts
Temporary or Nominal Accounts
• Revenue accounts
• Expense accounts
• Gains and Losses accounts
• Equity drawing accounts
• Income and Expense summary account
Mixed Accounts
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 Acc 101 presented by RUBY BAGSIT
Types of Accounts
At the end of the accounting period, the temporary or nominal
accounts are closed. The following entries are recorded and
posted:
1. Revenue accounts are closed (debited) against the Income
and Expense Summary account.
2. Cost of goods sold accounts are closed (credited) against the
Income and Expense Summary account.
3. Expense accounts are closed (credited) against the Income
and Expense Summary account.
4. The resulting balance of the Income and Expense Summary
account is closed to the Equity account.
5. Any drawing account is closed against the Equity account.
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Exercise 1: Based on the following Adjusted Trial Balance of Pacioli General
Services, prepare the closing entries.

Acc 101 presented by RUBY BAGSIT

PACIOLI GENERAL SERVICES
Adjusted Trial Balance
As of January 31, 2021

Code Account Title Debit Credit

101 Cash 76,000
111 Accounts Receivable 22,000
121 Supplies 1,000
151 Equipment 30,000
152 Accumulated Depreciation - Equipment 500
201 Accounts Payable 10,500
301 Pacioli, Capital 100,000
311 Pacioli, Drawing 10,000
401 Service Revenue 50,000
601 Salaries 12,000
602 Depreciation 500
603 Supplies Expense 7,000
604 Utility Expense 2,500
TOTAL P161,000 P161,000

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 Acc 101 presented by RUBY BAGSIT
Post-Closing Trial Balance

A Post-Closing Trial Balance is prepared

after the recording and posting of the
closing entries. The remaining
Permanent/Real accounts of assets,
liabilities and equity are presented with
their balances. This provides the starting
balances for the next accounting period.

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Exercise 1: Based on the following Adjusted Trial Balance of Pacioli General
Services, prepare the post-closing trial balance.

Acc 101 presented by RUBY BAGSIT

PACIOLI GENERAL SERVICES
Adjusted Trial Balance
As of January 31, 2021

Code Account Title Debit Credit

101 Cash 76,000
111 Accounts Receivable 22,000
121 Supplies 1,000
151 Equipment 30,000
152 Accumulated Depreciation - Equipment 500
201 Accounts Payable 10,500
301 Pacioli, Capital 100,000
311 Pacioli, Drawing 10,000
401 Service Revenue 50,000
601 Salaries 12,000
602 Depreciation 500
603 Supplies Expense 7,000
604 Utility Expense 2,500
TOTAL P161,000 P161,000

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 Acc 101 presented by RUBY BAGSIT
CLASS ASSIGNMENT

Do Exercises 1 and 2 of this presentation.

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 Acc 101 presented by RUBY BAGSIT
Thank you

Ruby Bagsit • _

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