Worksheet and Its Importance

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 … 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 a worksheet, the following steps must be followed: Post Balances in Trial Balance Columns First of all, the names of all ledger accounts with 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 then totaled. Post … Read more

Preparation of Worksheet

Now we will explain the procedure of Worksheet 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 the … Read more