Errors are often made when preparing a trial balance, journalizing or posting adjusting entries, and preparing financial statements.

Once these errors are recorded in the journal, ledger, or trial balance, which are formal and permanent records, considerable time and effort must be expended to correct them.

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:

  • Worksheets simplify the work to be done at the end of the accounting period
  • Worksheets help to avoid entering errors in the permanent record of accounting
  • If an error is made on the worksheet, it can be corrected easily

Do you want to test your knowledge about worksheets? Take the multiple-choice quiz we have prepared for you here.

Frequently Asked Questions

What is a worksheet?

Worksheet is a columnar statement containing the different types of information required at the end of a trading period. It is not part of permanent accounting record. A worksheet 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.

Who uses a worksheet?

Worksheets are prepared by accountants for their own convenience. It is not part of the permanent accounting record. Accountants use it 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 ledger accounts.

Are worksheets part of the accounting record?

No. A worksheet is not part of the permanent accounting record. It is a columnar statement containing information at the end of a trading period which helps accountants 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 ledger accounts.

What is a trial balance?

Trial Balance is a list containing all the ledger account balances that appear on a worksheet. No single column will have an equal number of debits and credits unless all columns contain an equal number of debits and credits. Trial Balance is prepared after the preparation of a worksheet because it lists all ledger account balances at the end of the accounting period in one place. Thereby, making it easy to find errors before they get into the permanent record.

What is journalizing?

Journalizing is posting only those transactions that affect the accounting period under consideration in a record. This record is called the journal and is also sometimes referred to as journals.

True is a Certified Educator in Personal Finance (CEPF®), a member of the Society for Advancing Business Editing and Writing, contributes to his financial education site, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University, where he received a bachelor of science in business and data analytics.

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