2. Group Members:
• Md. Al Imran 162-15-7911
• Prithula Gupta 162-15-7699
• Md. Juyel Rana 162-15-8136
3. What is worksheet?
The worksheet is a multi-column
sheet or a computer spreadsheet
where accountant writes in brief
information necessary for
preparing adjusting entries and
financial statements.
5. General worksheet:
The general worksheet contains four to six pair of columns. Generally,
five pair columns or ten columns worksheet can serve the purpose of
general business. These five pair columns are:
• Trial balance
• Adjustment
• Adjusted trial balance
• Income statement
• Balance sheet
6. Detailed worksheet:
The detailed worksheet is prepared for containing more detailed
information over a general worksheet. Sometimes extra sheet containing
columns which are enclosed for explaining particular items. The matters
for which item-wise lists are to be prepared are:
• Accounts receivable and accounts payable lists
• Production expenditure lists
• Insurance premium lists
7. Audit worksheet:
Audit worksheet is used for preparing financial statements and lists for
various uses of business concerns. Audit worksheet is prepared in the
light of auditing of various items included in the worksheet. It is an aid to
audit the work of a business concern.
The main objective of the worksheet is to verify the accuracy of
accounting information before preparingfinancial statements. Columns
of the worksheet are drawn mainly as per necessity.
8. How to prepare worksheet?
There are 8 steps for preparing a worksheet. Those are given below:
• Name of business organization and preparation date.
• Drawing column and mentioning the head of the column.
• Unadjusted Trial Balance.
• Adjustment column.
• Adjusted trial balance column.
• Income statement column.
• Retained earnings statement.
• Balance sheet.
9. Steps 1: Name of business organization and
preparation date
At the beginning of worksheet the name of the organization for which
worksheet is prepared is to be written in the bold form and also the date
of preparation of worksheet is to be mentioned.
10. Step 2: Drawing column and mentioning the head of
the column
Drawing column titles are to be mentioned here.
For example, serial number in the first column, the title of accounts in the
second column and thereafter pair columns.
11. Step 3: Unadjusted Trial Balance
After the serial number and accounts title columns, in unadjusted trial
balance, pair column ledger accounts balances are posted straight to
check the agreement of trial balance.
This trial balance is called pre-closing trial balance as it is prepared with
the ledger balances before keeping accounts of adjustment items. Debit
and credit balances of ledger accounts are written in the debit and credit
columns of the trial balance respectively.
12. Step 4: Adjustment column
At the end of the accounting period, the items or transactions which have not
been accounted for are written in the debit and credit of adjustment columns.
At the time of making adjustments, if there does not exist any item in the trial
balance for debiting and crediting, these adjusting items are to be written below
the trial balance under appropriate head(s) in debit and credit columns of
adjustment.
To identify the adjusting items separate code number for each item be given in
debit and credit columns. Thereafter debit and credit columns of adjustments
are totaled for assuring their agreement.
13. Step 5: Adjusted trial balance column
Writing necessary adjustments in the adjustment column, the balance of every
account relating to adjustments is ascertained and thereafter all ledger account
balances including adjusted ledger balances are recorded in the debit and credit
columns of adjusted trial balance.
That is, unadjusted balances of trial balance are adjusted as per rules and these
are written down in the column of adjusted trial balance.
Writing all ledger balances – adjusted and unadjusted in adjusted trial balance
totals of debit and credit are ascertained to prove the arithmetical accuracy of
the ledger accounts.
14. Step 6: Income statement column
All periodical expenses and incomes of adjusted trial balance are written
in debit and credit column of income statement respectively.
The difference between total income and total expenses of the income
statement is called profit or loss. The profit/loss of income statement is
transferred to the balance sheet if the retained earnings statement is not
prepared.
15. Step 7: Retained earnings statement
In case of a joint stock company, retained earning column is kept in the
worksheet before balance sheet column.
Here previous year’s profit / loss if any and income/loss of income statement of
the worksheet are written in the credit money column and distribution of items
regarding distribution of profit such as, dividend paid, proposed dividend,
income tax paid, creation of fund are shown in the debit money column of
retained earnings statement.
The difference between the totals of debit and credit columns is transferred to
the balance sheet column of the worksheet.
16. Step 8: Balance sheet
All assets and liabilities of adjusted trial balance including the balance of income
statement are written in the debit and credit columns of the balance sheet of
worksheet i.e., assets are written in debit money column and liabilities, owners
equity are written in the credit money column.
Totals of debit and credit column of the balance sheet are equal.
The number of columns of worksheet and titles of columns depends on nature
and demand of the business concern.
