WORKSHEET

WORK SHEET is a draft made to

facilitate the preparation of
financial reports on the financial
position and results of operations of
a business organization.
---- is based on the Trial Balance
prepared at the end of the
accounting period.
Parts of Work Sheet
1. Heading of the work sheet
1st line : name of the company
2nd line : title or Work sheet
3rd line : date
2. Body of the Work Sheet
The body of the work sheet contains
the Trial Balance which is the basis of the
preparation thereof, additional pairs of
columns as required by the needs of the
business.
Principal columns in the Work Sheet
a. Trial Balance, debit and credit
b. Income Statement, debit and credit
c. Balance Sheet, debit and credit
Trial Balance Columns
The Trial Balance pair of columns present the
respective balances of the accounts indicated in their
individual ledger pages at the end of the accounting
period as shown in the Trial Balance.
Income Statement Columns
The Income Statement pair of
columns present the balances of the
income and expenses accounts, in
as much as these accounts would
indicate the result of operations
which is presented in the financial
report the Income Statement.
Balance Sheet Columns
The Balance sheet pair of columns
present the balances of the assets,
liabilities and capital or the real
accounts to show the financial
position of the business. The Trial
Balance amounts of the real accounts
are extended to the Balance Sheet
columns
The profit figure shown in the Income
Statement pair of columns, is extended
to the Balance Sheet credit column to
signify that profit is an addition to
capital, a credit account. In the same
manner, the amount loss shown in the
Income Statement pair columns, is also
extended to the Balance sheet debit
column, to signify that loss is deducted
from a capital, a credit account.