Accounting Worksheet: What Is A Worksheet?

ACCOUNTING WORKSHEET
WHAT IS A WORKSHEET?
Definition.- The worksheet is an important document but not essential or mandatory,
but rather an additional step within the accounting cycle. Because it is considered a
working draft, this sheet can be written in pencil.
A Worksheet is an important document although it is not essential or mandatory.

It is a columnar form used in accounting to organize information, in order to prepare
adjusting entries, the profit and loss statement, closing entries, and the balance
sheet.
It is a very large accounting sheet because all the trial balance accounts must appear
first, then a section where the adjustments are noted, followed by a section where the
trial balance is made after the adjustments, continues with a column to determine the
cost of sales, and ends with the preparation of the income statement and balance
sheet. It is a draft that is made to facilitate the adjustments, closing and presentation
of the financial statements.
The worksheet is not an additional requirement, nor is it fundamental in the
accounting books, it is only a column sheet that is used as a draft for the correct
preparation of the financial statements, considering the necessary accounting
adjustments. The worksheets must be designed according to the needs of a specific
company, and the information objectives to be extracted.
WHAT IS THE WORKSHEET FOR?

1.- Record the work carried out in an audit
The HT provide a systematic and detailed record of the work carried out by
professionals. finals of the area, in the audit examinations that are carried out.
The HTs also become a record of the information and evidence that has been
obtained, and which serves to support the findings, conclusions, judgments and
recommendations delivered, as a result of the audit work.
Therefore, the content of these HT must be sufficient to support the judgments, I

conclude. nes and recommends tions delivered through the respective audit report
estuary.
2.- Determine that the exam was carried out in accordance with the NAGAS
In the HT, all antecedents must be reflected tes that allow us to guarantee that the
exam was carried out was in accordance with Generally Accepted Auditing
Standards, it is especially those related to the execution of the work.
Therefore the files or hornbeam These HT must contain the audit programs, the
avoidance dence obtained, the studies and understanding of Internal Control and the
degree of confidence bond or risks that it implies, the procedures applied ced, and
other background information necessary for the exam.
3.- Serve as a source of information for future exams nes.
The background information collected during the examination and the conclusions
reached by the auditors, and which serve seen as evidence to support the audit
report, in many cases it can be useful to the auditor, to show in the work carried out,
and consider it as another element of judgment when scheduling the new audit.
4.- Improve the quality of exams
The HT must not only be well prepared or elaborate das, but they also have to
contain the most relevant matters duly studied, with all the evidence sufficient
information to ensure that adequate attention from the audit point of view has been
given to the matters examined.
5.- Facilitate Review and Supervision
The HT are fundamental for the review stage that must be carried out by the person
in charge of the audit or the person responsible for it at the stage of the execution of
the examination and the draft or preliminary audit report, before it can be issued.
muted or sent to different users. It also allows people outside the person who
prepared them, examine the details of the audit recorded in those papers.
6.- Help professional development
The correct preparation of the HT can be of important help in the professional

development of the auditors who make up the human group or team that is carrying
out a certain audit, since in all likelihood, these HT can They can be used on other
occasions and will also serve as guides for future exams.
7.- Support the audit report in judicial processes cials
In those cases that inform audit month give rise to presentations before the courts of
justice, normal mind for some matter associated with some irregu larities committed in
companies, or other crimes found during During the exam, the HT are of great
importance to support the content. nest of the audit report, and also help the auditor
to remember situations about which the contested matter is about.
WORKSHEET FEATURES
The format consists of the following parts:
1. Heading: formed by the company name, the name of the document and the date
of the period for which it is prepared.
2. Sections:
• Account order number
• Name of the accounts with their code
• Trial balance with debits and credits
• Adjustments with debits and credits
• Adjusted balance with debits and credits
• Adjustments for inflation
• Balance adjusted for inflation
• Profits and losses with debits and credits
• Balance sheet with debits and credits
WORKSHEET FORMAT
WHO USES THE WORKSHEET?
Worksheets are generally used by professionals such as auditors, accountants, and
financial professionals to organize information as a tool for preparing financial
statements.
DIFFERENCE BETWEEN WORKSHEET AND WORKPAPER

Although many authors define it as the same, they are differentiated by:
WORK PAPERS WORK SHEETS

They are requirements as evidence They are neither essential nor
of the work performed. mandatory.
They are notes of information or It is a document that is used to
auxiliary calculations. organize information.
It is for everyday use. It is not for everyday use, it is
adopted according to the needs of
each company.
WORKSHEET TYPES
 Subtracting Cash Flow Worksheet (Direct Method)
 Worksheet for cash flow statement (indirect method)
 Worksheet for preparing the statement of origin and application of funds (working
capital)

TYPES OF WORKSHEET
The classification according to the requirements and needs of a company is as

follows:
· 6 column worksheet (*)
· 8 column worksheet (*)
· 10 column worksheet (**)
· 12 column worksheet (**)
(*) They correspond to worksheets prepared solely on a cash basis.
(**) Specifically correspond to worksheets prepared on a cash and accrual basis.
Regarding the design and formation of the effective base worksheets, we will say that
it is widely accepted in our environment. However, it may vary according to the needs
and requirements of a company.
However, we must point out that in accounting only the columns that show monetary
values are counted, which is why we discarded the initial three columns.
FILLING IN THE WORKSHEET

1. We start from the trial balance, we write down each and every one of the accounts
that appear in the trial balance, making sure to record the debit balances in the
“Debit” column and the credit balances in the “Credit” column. At the end, a graph is
drawn. line below the latest balances and add the two totals making sure they add up.
Once the balance has been verified, a double line is drawn below the totals.
2 . Once the trial balance has been made, we review each of the accounts and
remove those that need to be updated since we must reflect the correct amount of
them. It is likely that new accounts that were not in the initial trial balance will be
created in the adjustment process. What should we do with these accounts? Add
them to the initial trial balance at the end after totaling the balances. In the
adjustments section we must list from the first adjustment to the last adjustment and
ensure that the theory of debit and credit is fulfilled. In the end we total the debit and
credit balances from the adjustments section and a double line is drawn under the
respective balances.
3 . Then we go to the adjusted balance section, here we are going to transfer all the
accounts from the initial trial balance that did not need adjustments, but we must be
especially careful with the accounts that were adjusted.
For example: if the account has a debit balance and in the adjustment it has a credit
balance, the amounts must be subtracted and the resulting balance entered, which
can be a debit or credit balance depending on the greater amount. Of course, if the
account has a debit balance and in adjustment is also a debit balance, both amounts
are added. And the total debtor is placed. The same happens with the opposite case.
We must ensure that all adjusted and unadjusted accounts go to the adjusted balance
sheet section, for this we can use a rule to verify line by line. At the end we add the
debit totals and the credit totals, which, as always, must be balanced and we draw a
double line under the final balances.
4. In the cost of sales section, we must calculate precisely that amount. We extract
step by step following the cost of sale formula, which we already know:
Cost of sales = Initial inventory + Expenses on purchases – Returns, discounts and
discounts on purchases – Final inventory We bring each of these accounts from the
adjusted balance sheet section and place it with its proper balances in the cost of
sales section. Here the total of the debits must be greater than the total of the credits,
that amount is the cost of sale. But this amount must be placed in the credits column
so that when added to the credit total it is equal to the debt total. Once the equal debit
balance and credit balance have been copied, a double line is drawn at the end after
the balances.
5. Thus we move on to the income statement section, for this section all the nominal
accounts that appear in the adjusted balance sheet will be transferred, that is, all the
income expenses recorded in said section. The cost of sales must also be added in
the debit column (it is an expense and has a debit balance). When finding the totals of
the debit with the credit, there will always be a difference that is the profit or loss of
the evaluated period. For there to be a profit, the total credits must be greater than
the total debits.
Once the profit or loss is determined, this total is taken and added in the missing
column to establish balance. The two columns are then totaled and a double line is
drawn under the totals.
6. In the last section corresponding to the balance sheet, all the real accounts will be
entered, that is, the asset, liability and capital accounts as well as the profit or loss
obtained in the previous section. If it is a profit it is placed in the credits column, if it
was a loss it is noted in the debits column.
Then the two columns are totaled and here the two totals (debit and credit) have to be
equal. Otherwise, there was an error in the calculations in the previous sections and
the annotations made from the first section will have to be reviewed one by one.

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ACCOUNTING WORKSHEET

A Worksheet is an important document although it is not essential or mandatory.

WHAT IS THE WORKSHEET FOR?

Therefore, the content of these HT must be sufficient to support the judgments, I

3.- Serve as a source of information for future exams nes.

4.- Improve the quality of exams

5.- Facilitate Review and Supervision

6.- Help professional development

The correct preparation of the HT can be of important help in the professional

7.- Support the audit report in judicial processes cials

DIFFERENCE BETWEEN WORKSHEET AND WORKPAPER

WORK PAPERS WORK SHEETS

The classification according to the requirements and needs of a company is as

· 6 column worksheet (*)

· 8 column worksheet (*)

· 10 column worksheet (**)

· 12 column worksheet (**)

(*) They correspond to worksheets prepared solely on a cash basis.

(**) Specifically correspond to worksheets prepared on a cash and accrual basis.

FILLING IN THE WORKSHEET

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