Objective of Work Sheet

To avoid errors in the permanent records of accounting

To check accuracy of financial statements

Chart of Accounts
each company keeps a chart of accounts that lists each account the company has. it's divided into 5 sections: assets, liabilities, equity, revenue and expenses. every of those accounts is within the company's book, wherever balances of every account are maintained. an accounting worksheet begins by listing every account and also the balance each account has.

Adjusting Entries

    One main purpose of an accounting worksheet is to record adjusting entries. Adjusting entries square measure created at the tip of every amount. they're not normal everyday-type entries; they only happen at the end of a month or period. examples of adjusting entries are those adjusting that is used, insurance used, revenue earned  and interest earned . These entries are recorded on the worksheet.

Trial Balance

 once adjusting entries are made, every account is updated on the worksheet. If an account had an amount, the previous quantity in that account must be adjusted. If no adjusting entry is formed to an account, the same balance transfers over to the present column. The worksheet helps to keep the company's ledger in balance.

Closing Entries

    The worksheet is a 10-column ledger and is also used to calculate and record closing entries. Books are always closed at the tip of every fiscal year and the worksheet aids also the closing process.

Financial Statements

 one of the primary uses for a worksheet is for the information it contains. after adjusting entries are created and closing entries are finalized, the financial statements of a business are produceded. We know that worksheet contains all the information needed to prepare these statements. once the financial statements are ready, the company begins a new worksheet for the following year.