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Accounting worksheet often refers to a loose piece of paper used by accountant for showing informal accounting statements. A worksheet is not a permanent accounting record. A valuable tool useful to help summarize and move data from the trial balance to the informal financial statements is a work sheet.
Example # 1:
COMSATS’ Consulting Services (CCS) was establishing in 1999. The company adjusts and closes its accounts at the end of the current accounting period. At December 31st, 2016 the balances in the ledger accounts prior to making adjusting entries. You are required to pass adjusting, closing entries and worksheet.
- In December 1st, 2016, the company signed a new rental agreement and paid three months’ rent in advance at a rate of Rs. 1,100 per month. This advance payment was debited to the Prepaid Rent account.
- The useful life of the equipment has been estimated at 10 years from date of acquisition. N0 depreciation expense has been recorded for the current year.
- Dues and Subscriptions expired during the period in total amount of Rs. 710.
- Consulting Services valued at Rs. 32,550 were rendered during the account year for clients who had made payment in advance.
- Salaries earned by employees but not yet paid amounted to Rs. 2,200 at December.
- An estimate of supplies on hand was made at December 31. The estimated cost of the unused supplies was Rs. 450.
- Accrued interest on Note Payable amounted to Rs. 100 at year-end (Set up accounts for Interest Expense and for Interest Payable).
>>> Read Closing and Worksheet Problems.
Mukharji, A., & Hanif, M. (2003). Financial Accounting (Vol. 1). New Delhi: Tata McGraw-Hill Publishing Co.
Narayanswami, R. (2008). Financial Accounting: A Managerial Perspective. (3rd, Ed.) New Delhi: Prentice Hall of India.
Ramchandran, N., & Kakani, R. K. (2007). Financial Accounting for Management. (2nd, Ed.) New Delhi: Tata McGraw Hill.
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