Worksheet is an informal or rough document in which auditor and accountant record information for financial statements and other account. Here we discuss most important parts and importance of worksheet.
Parts of a worksheet
A 10-column work sheet has the following parts:
- Initial Trial Balance
- Adjusted Trial Balance
- Income Statement
- Balance Sheet
Importance of Worksheet
A work sheet is important for adjustment process and making financial statements. The following points may be stated for the importance of a work sheet.
- Rectifying the ending balance of ledger accounts.
- Adjusting the trial balance.
- Finding the errors of posting.
- Roughly preparing the financial statements.
- Updating the financial statements.
- Monitoring the financial statements at a glance.
- Accumulating the financial statements on a single sheet.
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