WORKSHEET

The worksheet is an accounting tool used in order to summarize the accounting cycle and
is a precursor to the preparation of the financial statements. A typical worksheet would include 5
columns (excluding account titles) namely for the; unadjusted trial balance, adjusting journal
entries, adjusted trial balance, statement of financial position, and the statement of financial
performance.

Source: https://studyfinance.com/accounting-worksheet/

Note that a worksheet is not part of an entity’s general ledger, nor is it a financial
statement, it is rather a tool used by bookkeepers for their convenience. It can also be used for
analytical and summary tool to show how accounts were originally posted to the ledger and what
adjustments were made before they were presented in the financial statements.
Preparing the Worksheet (amounts assumed)
1. Enter the account balances in the
unadjusted trial balance column
and total the amounts.
Listing all the accounts
with their balances helps identify
the accounts that need adjustments.
This practice also helps ensure
completeness and accuracy in the
adjustment process.

2. Enter the adjusting entries in the

adjustments column and total the
amounts.
Note: adjustments are not
journalized until after the
worksheet is completed and the
financial statements are prepared.
3. Compute each account’s adjusted balance by combining the unadjusted trial balance and
the adjusted figures.

4. Extend the asset, liability and owner’s equity amounts from the adjusted trial balance
columns to the balance sheet column. Extend the income and expense amounts to the
income statement columns. Total the statement columns.
5. Compute the profit or loss as the difference between the total
revenues and total expenses in the income statement.
Revenues (Income Statement credit column total) $ 27,800
Less; Expenses (Income Statement debit column total) 14,850
Profit $ 12,900

Note: The profit/loss should be placed in the column where the

debits and credits of the IS and BS differ, this is because profits
increase owner’s equity and recorded as a credit (dr income
summary, cr Xxxx, Capital).

After completing the 5 steps, your worksheet should look like this:
SAMPLE PROBLEMS
1. Consider the following statements:
Statement 1: A worksheet is financial statement that aids bookkeepers and accountants in
the preparation of the Income Statement and Balance Sheet.
Statement 2: An error exists in the preparation of the worksheet when the total debits and
credits of the Income Statement are not equal before adding the profit/loss.

a. Only Statement 1 is true

b. Only Statement 2 is true
c. Both Statements are true
d. Both Statements are false

2. In which columns of a worksheet would the adjusted balance of the accumulated

depreciation account appear.

a. Adjusted Trial Balance Credit, Balance Sheet Debit, Income Statement Debit
b. Adjusting Entry Debit, Adjusted Trial Balance Debit, Balance Sheet Debit
c. Adjusting Entry Credit, Adjusted Trial Balance Credit, Balance Sheet Credit
d. Adjusted Trial Balance Credit, Balance Sheet Credit

3. A bookkeeper can prepare the following financial statements from the worksheet, except;

a. Statement of Financial Position

b. Statement of Financial Performance
c. Statement of Cash Flows
d. None of the above

4. It lists all the business accounts before year-end adjusting journal entries are made.

a. General Journal
b. Unadjusted Trial Balance
c. Worksheet
d. Balance Sheet

5. ABC Company is a sole proprietorship owned by Mr. Dela Cruz. The worksheet shows
that the company had a total debit balance in its 2021 Balance Sheet of Php 1,500,000,
total liabilities is Php 950,000, Accumulated Depreciation is Php 25,000. The company
realized a total profit of Php 250,000 for the year. Based on the given data, by what
amount should Dela Cruz, Capital increase in 2021? (Accumulated Depreciation is the
only contra-asset account of the company)

a. Php 525,000
b. Php 250,000
c. Php 270,000
d. Php 0
Answers
1. d.
2. d.
3. c.
4. b.
5. b.