10/09/2021

THE WORKSHEET

BOOKKEEPING NC-3

LECTURE 5

THE TRIAL BALANCE AND

THE WORKSHEET

GENSAN COLLEGE OF TECHNOLOGY, INC.

BOOKKEEPING NC-3
In partnership with the
TECHNICAL EDUCATION AND
SKILLS DEVELOPMENT AUTHORITY

THE WORKSHEET THE ACCOUNTING CYCLE

The accounting cycle
Worksheet is an optional accounting document
used to analyze and model account balances. A
worksheet is useful for ensuring that accounting
entries are derived correctly.

It is also a tool used to prepare the initial

balances of financial statements.

BOOKKEEPING NC-3 BOOKKEEPING NC-3

When to
THE ACCOUNTING CYCLE prepare a
Worksheet?
THE ACCOUNTING CYCLE Aaah!

The Accounting Cycle is composed of the following steps The Accounting Cycle is composed of the following steps

1. Collection and Verification of Source Documents 1. Collection and Verification of Source Documents
2. Analyze Each Transaction 2. Analyze Each Transaction
3. Journalize Each Transaction 3. Journalize Each Transaction
4. Post to Ledger The Accounting 4. Post to Ledger (General Ledger) The Accounting
Cycle Cycle
5. Prepare a Trial Balance 5. Prepare a Trial Balance
• Journalize Adjusting Entries • Journalize Adjusting Entries
• Prepare Adjusted Trial Balance • Prepare Adjusted Trial Balance
6. Prepare a Work Sheet 6. Prepare a Work Sheet
7. Prepare Financial Statements 7. Prepare Financial Statements
• Journalize and Post Closing Entries BOOKKEEPING NC-3
• Journalize and Post Closing Entries BOOKKEEPING NC-3

8. Prepare a Post-Closing Trial Balance 8. Prepare a Post-Closing Trial Balance

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THE FINANCIAL STATEMENTS THE WORKSHEET

Financial statements report the business
activities during the year and the
financial condition at the end of the year. It is
also the presentation of financial data.

BOOKKEEPING NC-3 BOOKKEEPING NC-3

THE WORKSHEET…from Activity

BASIC COMPONENTS OF FINANCIAL

STATEMENTS

BOOKKEEPING NC-3

The Basic Components of Financial Statements The Basic Components of Financial Statements

➢Statement of Financial Position ➢Statement of Financial Position

➢Statement of Profit or Loss ➢Statement of Profit or Loss
➢Statement of Changes in Equity ➢Statement of Changes in Equity
➢Statement of Cash Flow ➢Statement of Cash Flow
➢Notes to Financial Statement ➢Notes to Financial Statement

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The Basic Components of Financial Statements The Basic Components of Financial Statements

➢Statement of Financial Position ➢Statement of Financial Position

- composed of real accounts - sort as to order of liquidity
ASSETS LIABILITIES
• ASSETS
Current --- Cash Current --- Accounts Payable
• LIABILITIES
• EQUITY

Non-Current --- PPE Non-Current --- Long-term

Loans Payable

EQUITY

• Equity
• General Reserves
• Income/Loss
for the year

Statement of Financial Position Statement of Financial Position

ACCOUNT FORM REPORT FORM

ASSETS
-Current
ASSETS LIABILITIES -Non-Current
-Current -Current TOTAL ASSETS

-Non-Current -Non-Current LIABILITIES

-Current
TOTAL ASSETS TOTAL LIABILITIES -Non-Current
TOTAL LIABILITIES
EQUITY
EQUITY
-Equity
-Equity
-General Reserves -General Reserves
-Appropriations -Appropriations
TOTAL EQUITY TOTAL EQUITY

TOTAL LIABILITIES & EQUITY TOTAL LIABILITIES & EQUITY

The Basic Components of Financial Statements

The Basic Components of Financial Statements

➢Statement of Profit or Loss
- composed of nominal accounts
➢Statement of Financial Position
• REVENUE
➢Statement of Profit or Loss
• EXPENSES
➢Statement of Changes in Equity
➢Statement of Cash Flow
➢Notes to Financial Statement

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The Basic Components of Financial Statements Statement of Income

REPORT FORM
➢Statement of Profit or Loss
- sort as to: TOTAL SUPPORT AND REVENUE

Less: OPERATING EXPENSES

• Materiality of amount
TOTAL GROSS REVENUE
• Nature of account
Add: OTHER INCOME
INCOME EXPENSE

Largest Balance Largest Balance TOTAL REVENUE

Less: FINANCE CHARGES

Smallest Smallest EXCESS (SHORT) OF REVENUE OVER EXPENSES

Balance/Immaterial in Balance/Immaterial in
Nature Nature

The Basic Components of Financial Statements

The Basic Components of Financial Statements

➢Statement of Changes in Equity
- composed of real accounts
➢Statement of Financial Position
• Equity
➢Statement of Profit or Loss
• RESERVES
(commonly known as Accumulated Savings)
➢Statement of Changes in Equity
➢Statement of Cash Flow
➢Notes to Financial Statement

The Basic Components of Financial Statements Statement of Changes in Equity

REPORT FORM
➢Statement of Changes in Equity
- changes to each account Equity
Beginning Balance
Additional Investment/Donations
Equity GENERAL RESERVES Ending Balance

Beginning Balance Beginning Balance RESERVES

(+) Additional Investment (+) Net Income Beginning Balance
(-) Appropriation (-) Net Loss Excess (Short) of Revenue over Expenses
Less Appropriations
Ending Balance Ending Balance Ending Balance

TOTAL Equity

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The Basic Components of Financial Statements The Basic Components of Financial Statements
Other Terms Used Other Terms Used
➢Statement of Financial Position ➢Statement of Financial Position
• aka Balance Sheet
➢Statement of Profit or Loss
➢Statement of Profit or Loss
➢Statement of Changes in Equity
➢Statement of Changes in Equity
➢Statement of Cash Flow
➢Statement of Cash Flow
➢Notes to Financial Statement
➢Notes to Financial Statement

The Basic Components of Financial Statements LECTURER

Other Terms Used
➢Statement of Financial Position
ALONEY B. SOMIDO, JR.
➢Statement of Profit or Loss Email: absomido.jr@gmail.com
• aka Income Statement Mobile: 0917-157-9347; 0933-861-3298
Landline: (083)302-25-69
• Statement of Financial Performance FB Msgr: Al Bato Somido Jr.; m.me/aloneysomidojr
• Statement of Income
• Statement of Comprehensive Income Under the guidance of
MS. ARIANE KRISTINE FORTINEZ
Bookkeeping NC-3 Trainor
➢Statement of Changes in Equity
➢Statement of Cash Flow
➢Notes to Financial Statement

End of Lecture 5

Thank you!