An accounting worksheet is something a business uses to close out its books at the end of a year. The worksheet starts with balances of all the accounts a business has; the balances are adjusted if needed; and all temporary accounts are closed. An accounting worksheet is done on a 10-column ledger manually on paper or on a computerized spreadsheet. From the worksheet, financial statements are calculated.
Fill out the first column of a ledger with all accounts the business has. The accounts go in order by assets, liabilities, equity, revenue and expenses. The balance of each account, which represents the trial balance, is listed in the first two number columns. The debits go on the left, the credits on the right. Each account balance is transferred to the appropriate debit or credit columns on the worksheet. Totals are calculated for debits and credits and both amounts are placed at the bottom of the worksheet. Debits must equal credits.
Perform adjusting entries on the next two columns. Adjusting entries are entries made to adjust certain accounts at the end of a period that have inaccurate account balances. The Supplies account is an example. An employee counts the supplies on hand at the end of the period and finds there is $100 of supplies left, but the Supplies account lists the amount at $150. An adjusting entry is required here to adjust the amount to reflect the accurate amount. An entry is posted by debiting Supplies Expense for $50 and crediting the Supplies account for $50. All adjusting entries are done and column debit and credit totals are calculated and placed at the bottom of the page.
Adjust the trial balance amounts by subtracting any accounts with adjusting entries made to them. These new amounts are placed in the next two columns. Any amounts unadjusted are simply transferred over to these columns. This amount represents the adjusted trial balance.
Fill in the remaining four columns which represent the balance sheet and income statements. All assets, liabilities and equity balances are transferred to the balance sheet columns. All revenue and expense account balances are transferred to the income statement columns.
Fill out the last two columns with the post closing trial balance. All balances from the balance sheet and income statement columns are transferred to the last two columns, which represent the post-closing trial balance. This is the balance with which the company begins its books the next year.