What is a Worksheet in Accounting?

In accounting, a worksheet is a document containing a myriad of financial information about a business for a specific period or cycle. Typically created in spreadsheet format, it provides a detailed analysis of the business’s financial transactions. Normally, an accounting worksheet will contain the following information.

Income Statement

The income statement is a part of the accounting worksheet that features revenue and expense balances. Also known as a profit and loss account, it shows the business’s expenses for the period.

Trial Balance

Another component of an accounting worksheet is trial balance. This component reveals the business’s assets, liabilities, revenue and expenses for the period. Normally, the trial balance section will list all accounts with a debit under the same column and all accounts with a credit under a different column.

Balance Sheet

Of course, you’ll also find a balance sheet section in an accounting worksheet. As you  may already know, the balance sheet contains information about the business’s assets, liabilities and capital account balances. When creating a balance sheet, you should check to make sure the total of the debit and credit columns equals the balance.

Chart of Accounts

The chart of accounts section of an accounting worksheet features a list of all accounts the business has. More specifically, it breaks down this information into several subsections, including assets, liabilities, equity, revenue and expenses.

Adjusting Entries

The adjusting entries section, as the name suggests, reveals all adjustments the business had made to its financial entries. Adjusting entries are made at the end of a fiscal period. Keep in mind, however, that these are not traditional adjustments; adjusting entries are made specifically at the end of a fiscal period.

Retained Earnings Statement

Finally, you’ll also find a section for retained earnings in an accounting worksheet. This statement is intended to show the changes in a retained earnings account. Normally, it shows a credit for the beginning balance and debits for money to paid to owners and shareholders.

These are just a few of the main components in an accounting worksheet. It’s important to note that some companies may structure their worksheet differently. The key thing to remember is that this document contains detailed information about a business’s finances for a specific period. It usually features the sections listed above, though they may contain other sections as well.

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