Fundamentals of Accountancy, Business and Management 1 (FABM 1)
Fundamentals of Accountancy, Business and Management 1 (FABM 1)
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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(FABM 1)
Self-Learning
Preparing of
Module
5
Post-Closing Trial Balance
12
Quarter 4
Introductory Message
For the facilitator:
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:
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:
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.
Posttest - This measure how much you have learned from the
entire module.
EXPECTATIONS
PRETEST
Directions: Write the correct letter of your answer on the space provided.
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.
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.
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.
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
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
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