1. The Worksheet is a wide sheet paper that contains a lot of columns and used to fill the required accounting details to provide a Trial Balance, adjustment entry, Financial Statements, and closing entries.
2. The Worksheet facilitates the preparation of Financial Statements because all accounting work at the end of the accounting period is contained. However, the Worksheet is not part of a fixed accounting record.
3. The Worksheet is used to plan and carry out preliminary works before the Financial Statement is prepared.
4. The Worksheet title is “Worksheet for year end ..”
5. The 10-column Worksheet consists of two columns for each of the following details, which is one column for debit and one column for credit:
a) Trial Balance (pre-adjustment)
b) Adjustment entry
c) Adjusted Trial Balance (post-adjustment)
d) Revenue Statement ( Trading Account and Profit Loss combination)
e) Balance sheet

Steps To Prepare Worksheet
Step 1 : Listing the ledger account balances on Trial Balance in  Worksheet
a)Calculate the amount of Debit column and Trial Balance credit. Make sure that the amount of debit columns are the same as the amount of credit columns.    

Step 2 :Insert adjustment into adjustment column

a) Every adjustment has debit and credit entries. If an adjustment involves one account not listed in  Trial Balance, then the new account is recorded under the existing Trial Balance list.    

Step 3: Insert all balances into adjusted Trial Balance column.

a) All balances for adjusted balances and balances that do not require adjustment must be entered into Trial Balance column.
b) The number of debit columns must equal the number of credit columns.
c) If there is a difference in the amount between the two columns, check to detect and correct errors before the transfer work to the Ending Account and Balance Sheet is made.

Step 4: Transfer the balance from the Adjusted Trial Balance column into  Income
Statement and Balance Sheets column.
a) Each detail in Adjusted Trial Balance must be recorded once in the Income Statement or Balance Sheet column.

Expenses account balance ————————> Debit Statement Income Revenue account balance—————————> Credit Statement Income    Assets, previous expenses, ————————-> Balance Sheet left side accrued revenue
Liability, owner equity, accrued expenses, —————–> Balance Sheet right side previous revenue

b) Record final stock in:
i) Credit Income Statement column
ii) Balance Sheet left column
Note: Only final stocks are recorded in both Income Statement and the Balance Sheet.
Step 5: Sum up debit and credit statement columns
a) Sum up the Income Statement column (Trading Account and Profit & Loss) to find the difference between the two columns
b) If the credit amount exceeds debit amount——————> net profit (balance digit in debit column)
c) if the debit amount exceeds credit amount——————-> net loss (balance digit in credit column)    

Step 6 : Sum up Balance Sheet left column(asset) and right(liability). a) Net profit is recorded in the balance sheet while the net loss is recorded in its asset column
b) Final stock recorded in Balance Sheet asset column
c) The balance sheet must be balanced if all adjustments are made correctly and all adjusted detail is transferred to the correct account.       

After Worksheet Provided

1. Completed worksheets will be used to prepare the following:
a) Financial Statement
b) Adjustment Entries
c) Closing Entries
2. Financial statements (trade accounts, profit and loss accounts, and balance sheets) can be easily provided based on information from the Income Statement and Balance Sheet columns in the Worksheet.
3. Adjustment entries in General Journal are easily provided by referring information from Worksheet adjustment column.
4. Closing entry is done by referring to the Income Statement in Worksheet.