Worksheet and its importance

Many errors may be made in the preparation of a Trial Balance, Journalizing and posting of adjusting entries and preparation of financial statement. Once these errors are recorded in Journal, ledger and Trial Balance which are formal and permanent records, considerable time and effort must be wasted in correcting them. One of the best ways … Read more

Parts of a worksheet

Heading The heading of Work Sheet consists of three parts:- The name of business. The title “Work sheet” The period of time (accounting period) for which the work sheet is prepared. Body The body of the Work Sheet contains a big column for the name of accounts and ten money columns or five pairs of … Read more

Steps in preparing a worksheet

In preparing the work sheet the following steps are to be followed:- Posting of balances in trial balance columns: First of all the name of all ledger accounts having balances are written in the first column and their balances in their respective debit and credit columns of the trial balance. The trial balance columns are … Read more

Preparation of worksheet

Now we will explain the procedure of Work Sheet for the following types of business: Services rendering concerns. Trading concerns. Preparation of work sheet for services rendering concerns: Services rendering concern is a type of business which earns its revenue through rendering services. Work sheet procedure for a service rendering concern will be explained with … Read more