Worksheet

The working hour is an accounting tool, used to summarize all the accounting information of the activities carried out by
the company during a given period. The Worksheet allows you to verify the accuracy of the accounting records, make the
necessary corrections, make adjustments and prepare the information with which the Financial Statements will be
prepared.

Importance
The Worksheet allows you to verify the accuracy of the accounting records, make the necessary corrections, make
adjustments and prepare the information with which the Financial Statements will be prepared.

Structure
The worksheet has a very simple structure in terms of its design, it includes several pairs of columns that vary depending
on the nature of the company or economic activity to which it is dedicated, which is why the use of accounting sheets is
generally used. of twelve (12) columns. For an illustrative example we will refer to a simple worksheet of a
service company.
This accounting instrument contains, first of all, a heading indicating:
a) Name of the Company.
b)The express name of “WORKSHEET”.
c)The period of the accounting cycle that it covers.

Secondly, it understands its columnar structure; This part is composed of:

1.A column to write the titles of the accounts.
[Link] (6) pairs of columns with the following headings:
a) Trial Balance
b)Settings.
c)Adjusted Trial Balance.
 d)Cost of Sales.
e) Profit and Loss Statement.
f) General Balance.
It is important to note that the order of the columns indicated in point 2 must be maintained. , since the result of
the adjustments directly affects the final balance of the General Balance, that is, the result of one column leads
to the other. To make a specific example of the worksheet, with the characteristics indicated so far, except that
we will go by step, that is, from the simplest to the most complex, so in this example we will not use the point
referring to Settings and the Adjusted Trial Balance, let's take the following Trial Balance of “WE ARE THE
BEST”, corresponding to the first half of 2010.
PARTS OF THE WORKSHEET

Headers
A worksheet is an accounting tool used to develop financial statements. It is not considered a financial statement
itself, but does contain a header. The name of the company is indicated at the top of the worksheet. Below is the
title of the document "Worksheet" and then the date of the document, which is typically written "For Ended
Month," followed by the last day of the month.

Account information
On the left side of the worksheet each account the company has is listed. The accounts are listed in a certain
order and copied from the company's general ledger. The general ledger is a book that contains all the accounts
used, along with the transactions and balance of each of them. The accounts are listed in the following order:
assets, liabilities, capital, income and expenses. Next to each account title on the worksheet, write the number
that corresponds to it.

Checking balance
The first two columns of a six-column worksheet are designated for the company's balance sheet. The left
column is for debits and the right column is for credits. Since the account names are written on the worksheet,
the balance of each account is transferred as well. Accounts have balances that are debits or credits. If an
account balance is a debit card in the general ledger, it should be transferred to the worksheet as a debit. All
balances should be listed in the trial balance columns. After this is done, the columns are added and the totals
are placed at the bottom of the worksheet. The totals for both the debit and credit columns must be equal.

financial statements
The next four columns on the worksheet are used to separate the account balances into either the balance sheet
columns or the results columns. A balance sheet and an income statement are two types of financial statements
created from the worksheet. Each financial statement contains a debit and credit column. All account balances
are income or expenses that are transferred to the corresponding columns of the profit and loss statement. All
balances of other accounts, which are all assets, liabilities and shares, are transferred to the columns of the
balance sheet.
 PROPOSED EXERCISE

BOLIVARIAN REPUBLIC OF VENEZUELA

FERMÍN TORO UNIVERSITY
SCHOOL OF MANAGEMENT
ACCOUNTING II
At the close of the 2013 financial year, the company La Favorita presents the General Ledger accounts so that you can
proceed to make the worksheet and the respective adjustments, in order to determine the company's profit.
BOX 3.560,00 EFFECTS PAYABLE 227.381,67
BANK 125.360,85 WAGES AND SALARIES 456.352,45
ACCOUNTS
RECEIVABLE 365.896,35 RETURN IN SALES 65.896,35
COMMODITY 125.640,25 WATER COSTS 1.563,00
ACCOUNTS PAYABLE 275.980,21 RENT PAID IN ADVANCE 86.500,00
FURNITURE 895.632,10 MACHINERY 698.780,00
ACCUMULATED
DEPRECIATION OF
SHOPPING 978.685,35 FURNITURE 67.172,41
1.835.679,5 TRANSPORTATION
SALES 6 EXPENSES 12.563,00
DISCOUNTS ON SALES 36.596,36 MORTGAGE PAYABLE 365.489,00
DISCOUNTS ON 1.000.000,0
PURCHASES 25.698,75 CAPITAL 0
ACCUMULATED
FREIGHT IN MACHINERY
PURCHASES 65.987,56 DEPRECIATION 46.585,33
INSURANCE PAID IN
ADVANCE 12.000,00 SURPLUS 95.365,00
DESKTOP ITEMS 10.750,56 LEGAL RESERVATION 4.768,25
LIGHT EXPENSE 2.356,00

Additional Information:

The depreciation of Machinery and Furniture is 10% annually

The Insurance was contracted on 06/01/2013 for one year

The rent was paid for one year from 04/01/2013

When physically counting the office supplies, it was determined that only
2,150.11 remain in stock.

The final inventory of merchandise is 468,125.26

SOLUTION

COMPANY: THE FAVORITE

PERIOD 12/31/2013

ADJUSTM ADJUSTED
DESCRIPTION CHECKING BALANCE SALES COST
ENT BALANCES
HAS TO TO HAVE HAS TO TO HAVE HAS TO TO HAVE HAS TO TO H
BOX 3.560,00 3.560,00 0,00
BANK 125.360,85 125.360,85 0,00
ACCOUNTS RECEIVABLE 365.896,35 365.896,35 0,00
COMMODITY 125.640,25 125.640,25 0,00 125.640,25
ACCOUNTS PAYABLE 275.980,21 0,00 275.980,21
MOBILE 895.632,10 895.632,10 0,00
SHOPPING 978.685,35 978.685,35 0,00 978.685,35
SALES 1.835.679,56 0,00 1.835.679,56
DISCOUNTS ON SALES 36.596,36 36.596,36 0,00
DISCOUNTS ON PURCHASES 25.698,75 0,00 25.698,75 2
FREIGHT IN PURCHASES 65.987,56 65.987,56 0,00 65.987,56
INSURANCE PAID IN ADVANCE 12.000,00 6.000,00 6.000,00 0,00
DESKTOP ITEMS 10.750,56 8.600,45 2.150,11 0,00
LIGHT EXPENSES 2.356,00 2.356,00 0,00
EFFECTS PAYABLE 227.381,67 0,00 227.381,67
WAGES AND SALARIES 456.352,45 456.352,45 0,00
RETURN IN SALES 65.896,35 65.896,35 0,00
WATER COSTS 1.563,00 1.563,00 0,00
RENT PAID IN ADVANCE 86.500,00 64.875,00 21.625,00 0,00
MACHINERY 698.780,00 698.780,00 0,00
MOBILE ACCUM DEPREC 67.172,41 89.563,21 156.735,62
TRANSPORTATION EXPENSES 12.563,00 12.563,00 0,00
MORTGAGE PAYABLE 365.489,00 0,00 365.489,00
CAPITAL 1.000.000,00 0,00 1.000.000,00
MACHINERY ACCUM DEPREC 46.585,33 69.878,00 116.463,33
SURPLUS 95.365,00 0,00 95.365,00
LEGAL RESERVATION 4.768,25 0,00 4.768,25
TOTAL TRIAL BALANCE 3.944.120,18 3.944.120,18
MACHINERY ACCUMULATED
69.878,00 69.878,00 0,00
DEPREC EXPENSES
MOBILE DEPREC
89.563,21 89.563,21 0,00
ACCUMULATORY EXPENSES
INSURANCE EXPENSES 6.000,00 6.000,00 0,00
RENTAL COSTS 64.875,00 64.875,00 0,00
DESK ITEMS EXPENSES 8.600,45 8.600,45 0,00
TOTAL SETTINGS 238.916,66 238.916,66
TOTAL ADJUSTED BALANCE
4.103.561,39 4.103.561,39
SHEET
FINAL INVENTORY 46
 TOTAL BALANCES
COSTS OF SALE 1.170.313,16 49
TOTAL COST OF SALES 67
TOTAL BALANCES 1.170.313,16 1.17
PROFIT FOR THE YEAR

TOTAL BALANCE AT CLOSING

The Worksheet
It is an accounting tool considered as a working draft for the accountant, which allows the user to observe the adjustment of the balances of
the accounts in which an error has been obtained, at the same time allowing the analysis of movements in charges and credits. .
 IMPORTANCE
The completed worksheet is used in the preparation of financial reports at the end of the fiscal period.
The data in the Balance Sheet columns of the worksheet is used to prepare a new balance sheet. This new balance sheet shows the assets,
liabilities and equity existing at the end of the fiscal period for which this report was prepared.
The data in the Income Statements columns of the worksheet are used to prepare a financial report that shows the income earned and
expenses incurred during the period. When the amount of income is greater than the amount of expenses, the difference is called Net
Income. When the amount of expenses is greater than the amount of income, the difference is called Net Loss. The report that shows
income, expenses, and the net difference between the two is called the Income Statement.

Structure
The worksheet consists of the following structure:
Heading: formed by the name or company name of the organization , the name of the document and the date of the period in which it is
made.
In turn, it consists of these columns:
Account order number.
Name of the accounts with their code .
Trial balance with movements and balances, whether debtors or creditors on both parties.
The corresponding corrections in the adjustments in debits and credits column
Adjusted balances are obtained
Profit and loss
Balance sheet
TIC

Classification
Worksheet - adjustments - the worksheet, called by some authors a work paper, is a columnar form used in accounting to organize
information, in order to prepare adjusting entries, the profit and loss statement , the closing entries and the balance sheet.
Worksheet - adjustments for inflation - to this section the debits and credits of the accounts that were adjusted for inflation are
transferred, in accordance with current regulations
Worksheet - adjusted balance - to complete this section, proceed in the same way as in the following balances column of the general
ledger and balance sheets, as follows:
º the accounts that had no movement in the trial balance section or in the adjustments section are transferred directly to the adjusted
balance section, to their respective column depending on whether it is debit or credit
º the accounts that had movement in the trial balance section and in the adjustments section are added and a single value with a debit or
credit balance is passed to the adjusted balance. To do this, it must be taken into account that equal movements are added (debit + must,
have + have) and opposite movements are subtracted and preserve the balance of the largest movement (deb - have, must + must - have,
have - must, have + have - has to). The totals in the debit and credit columns must present equal sums.
Worksheet - balance sheet adjusted for inflation - in this column the balances corresponding to the accounts of the adjusted balance
sheet and inflation adjustments are recorded, added in the same way as the adjusted balance sheet section.
Worksheet -balance sheet - the values of the actual accounts that appear in the adjusted balance sheet are transferred to this section.
Thus, the asset accounts are recorded in the debit, keeping in mind to include the final inventory of merchandise and not record the initial
inventory; in addition, the loss of exercise when it occurs; In the credit column, the adjusted balances of the accounts that represent a
decrease in assets ( depreciation and provision), liabilities and equity are recorded, including the profit for the year that appears in the
profits and losses section. Like the previous sections, this one should give equal sums.
Worksheet - accounts and coding column - the names and code of the main accounts are recorded in an orderly manner, taking as
reference the order established in the catalog of accounts and with the data from the general ledger.
Worksheet - profits and losses - the values of the nominal accounts are transferred to the profits and losses section; that is, to debit the
accounts with a debit balance, that is, the cost and expense accounts; as there are accounts with a credit balance, that is, income or income
accounts. In the permanent inventory system , the value of the merchandise account not manufactured by the company that appears in the
trial balance is the final inventory of merchandise, which is why it goes directly to the balance sheet as an asset account, and it is not
necessary to determine its real value through beginning or ending inventories in the profit and loss column, as in the case of the periodic
inventory system. Another difference that is presented in the profit and loss section of the worksheet, between the two inventory systems , is
the cost of sales account that is used in permanent inventory; Because it is a nominal account, from the adjusted balance, its balance is
transferred to the profits and losses section. At the end of the transfer of the accounts to the profit and loss section, by either of the two
systems, the debits and credits are added. If the total credit (income) is greater than the total debt (expenses), a profit has been made;
Otherwise a loss has been incurred, the difference is written below the smaller amount to balance the columns and present equal sums.

Preparation
As we know, the worksheet, a very important auxiliary statement, must follow certain steps in its preparation, do not make mistakes when
transferring this data to the main financial statements such as the balance sheet, the income statement , the statement of cash flow and the
state of evolution of equity.
When referring to the methodology to prepare and issue a worksheet we want to establish the sequence of steps to follow and these are:
 1. Prepare the design and formation of the worksheet on a work paper.2. At the top and center of the design, incorporate the heading of
said state including the following:
* Company name (company name)
* State title (worksheet)
* Preparation date.
*Account currency
3. In column No 1, record the page number of the account, reflected in ledgers .
4. In column No 2, record the code of the accounts that have a balance in the trial balance.
5. In column No. 3, record titles of the accounts that have shown balances in the trial balance.
6. In column No. 4, transcribe the debit balances of the accounts that have such information in the trial balance.
7. In column No. 5, transcribe the credit balances of the accounts that have such information in the trial balance.
8. Determine sums in columns 4 and 5, which must be equal to the balances of the trial balance.
9. Classify the balances of the accounts that appear, according to the nomenclature and chart of accounts established in the company.
10. Determine sums in the expenses (6) and income (7) columns, in order to determine the result obtained. If the income is greater than the
expenses, there will be an economic profit. If expenses are greater than income there will be an economic loss.
11. Quantifying the result we have:
* In case of profit, it is incorporated in the expenses column, in order to equal the income and then transfer to column (9) liabilities and
equity. * In case of loss, said result must be closed in parentheses and also transferred to column (9) and instead of adding it will be
subtracted, since the results (profit or loss) necessarily affect the equity and have to be presented as part of it.
12. Next, the sums of columns (8 and 9) will be obtained and must be equal automatically.
13. Once the preparation is completed, the auditor will sign in the lower left part and the company representative in the lower right part with
their respective seals.

Conclusion
The worksheet is prepared with the purpose of verifying the accuracy of the accounting records , making the necessary corrections at the
most opportune time, carrying out the corresponding adjustments and organizing the information to present the financial statements, which
are important for the information that is handled in them and that manages to reveal the behavior of an organization or text profile.

Bibliography
Sweet01. «Worksheet» (in Spanish ). Accessed November 18, 2012.
Borja Romero, Maria del Rosario (2003). Tutorial for the Accounting Subject II. FCA Editorial Fund.

Annexes