Entries prepared at the end of the accounting period to update the records.
ADJUSTING THE BOOKS
Refers to the preparation of closing entries at the end of the accounting period to bring the income and expense accounts to zero balance.
CLOSING THE BOOKS
Refers to the preparation of trial balance after closing the income and expense accounts. The post closing trial balance shows only the assets, liabilities, and owner’s equity.
PREPARING A POST CLOSING TRIAL BALANCE
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