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Discussion questions about adjusted and after-trial balances

Can you explain after-trial balance?
What is the difference between adjusted and after-trial balance?
Does an adjusted trail balance show retained earnings?
What type of accounts are on an after-closing trail balance?


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Answer to Discussion question:
1. Introduction of Accounting Cycle: The accounting procedure begins with recording of business transactions in Journals and posting to the respective accounts and carrying ending balances to unadjusted trial balance.
The accounting cycle is completed under the following stages:

1 Journalizing
2 Posting
3 Balancing
4 Un-adjusted Trial Balance
5 Adjusting entries
6 Posting of adjusting entries to ledger accounts
7 Preparation of Adjusted Trial Balance
8 Income Statement
9 Position statement or balance sheet
10 Closing entries
11 Posting of closing entries
12 Preparation of After closing Trial Balance

2. Meaning of a Trial Balance: Trial balance is a statement which shows debit balances and credit balances of all accounts in the ledger. Trail balance is prepared on a particular date. Trial Balance is a list of debit balances and credit balances.
Trial balance is the first step in the preparation of Financial Statements.
Trail balance may be prepared at any time but it should be prepared at the close of accounting period. Trial balance may be prepared either by the Balance method or Total amount method.
In balance method the balances of all accounts are incorporated in the trial balance.
A 10 column worksheet is prepared to sort the items of revenue and capital as also incorporation of adjusting entries. The work sheet is optional.

3. Adjusted Trial Balance: ...

Solution Summary

This solution discusses adjusted trial balances and after-trial balances.