Closing Entries & Post Closing Trial Balance- Examples | Accounting How To | How to Pass Accounting

Closing Entries and Post Closing Trial Balance | Accounting How To explains the purpose of closing entries, why closing entries are necessary, how to prepare closing entries using two methods, how to post closing entries, how to prepare a post closing trial balance, and why closing entries are not necessary when using accounting software like QuickBooks, FreshBooks, or Xero. This is an accounting tutorial for accounting students, business owners, and bookkeepers to explain accounting basics for beginners. Featuring Terrance the T-Account Rex and accounting educator, Caroline Grimm, this accounting tutorial is part of the playlist series How to Pass Accounting Class and Accounting Basics for Business Owners. ⏰ Accounting How To Time Stamps: 00:00 The Tale of a Very Old Accountant 00:54 Who Should Watch the Video (and who shouldn’t) 01:10 World’s Coolest Accountant 01:14 What are Closing Entries and why are they needed? 01:20 Temporary and Permanent Accounts 03:13 Revisiting the Adjusted Trial Balance 03:42 What Accounts Need to Closing Entries? 04:06 Closing Entries Method 1: Income Summary 04:42 Closing Revenue Accounts 05:19 Closing Expense Accounts 06:25 Closing Net Income 07:03 Closing Dividends or Drawing 07:43 Posting Closing Entries to the General Ledger 08:17 Post Closing Trial Balance