Worksheet and Its Importance
One of the best ways to avoid errors and also to simplify the work to be done at the end of a trading period is to use a worksheet. A worksheet is a columnar statement containing the different types of information required at the end of a trading period.
The worksheet is not part of the permanent accounting record. It is prepared in pencil on a large sheet of paper by the accountant for his own convenience.
If an error is made on the worksheet, it can be erased and corrected much more easily than an error in the permanent accounting record.
Worksheets are basic forms on which accountants arrange the information needed to prepare financial statements. As such, worksheets are an accountant’s working tool.
Worksheets are designed so as to minimize errors by automatically bringing to light many types of errors that might otherwise end up in the general journal and, in turn, be posted to the ledger accounts.
Importance of Worksheets
The following points account for the importance of worksheet: