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Assignment on Accounting Worksheet

Added on - 07 Apr 2020

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ACCOUNTING WORKSHEET1ACCOUNTINGWORKSHEET
ACCOUNTING WORKSHEET2ContentsIntroduction:...............................................................................................................................3Detailed analysis:.......................................................................................................................3References................................................................................................................................18
ACCOUNTING WORKSHEET3Introduction:The assignment is about the creation of a worksheet. It has the general ledger accounts titlesin the first column and is followed by the debit and the credit amounts under the head ofunadjusted trial balance and the same are then exposed to various adjustments that areundertaken at the end of period such as the reporting or the recording of the depreciationamount. After then the adjustments are undertaken into account and the effects of theseadjustments are brought into the trial balance which is then termed as the Adjusted TrialBalance. This Adjusted TrialBalance is then used for the purposes of preparing the financialstatements.Detailed analysis:The worksheet generally has a general ledger account which contains the titles of theaccounts. There would be one debit and one credit. And this would be for each one of thefollowing headings:1.The first step for preparing the adjusted trial balance is to prepare the unadjusted trialbalance. Trial balance is an important accounting worksheet and is a part for closingthe books. This worksheet summarizes all the entries posted in the ledgers. Initially,the entries are recorded in the general ledgers and then the balances from theseledgers are transferred to the trial balance which helps in giving a bird eye view forthe transactions entered. Further, it also helps in identifying the errors done at the timeof posting entries in the ledgers. The trial balance generally contains three columns,
ACCOUNTING WORKSHEET4namely account titles or description, debit amounts and credit amounts. Once all thebalances from ledgers are entered in the trial balance the total of debit and creditamounts should be equal to each other. If the balance does not matches, it means thereis an mathematical error and before proceeding further this error needs to be rectified,else all the financial statements will reflect false picture and does not serve thepurpose. Generally, the errors for non-matching of debit and credit side of trialbalance are, posting of entries on the wrong side, posting of entries in wrong ledgers,error of omission, i.e. non posting of entry in one ledger, entries posted twice orduplicate entries. So, the trial balance is prepared to keep a check on all these errorsand to prepare error free financial statements. The unadjusted Trial Balance in thegiven case is as follows:Paul services Trial Balance As At 30 June 2016Account NoAccount NameDebitCredit101Cash at Bank$1,40,790105Accounts Receivable$46,930115Supplies$2,410120Prepaid Insurance$4,820135Office Furniture$60,300137Acc. Depreciation. –Furniture$11,000140Office Equipment$1,20,600141Acc. Depreciation –Equipment$22,000145Store Equipment$1,80,900146Acc. Depreciation –Equipment$16,500170Automobile$2,41,200171Acc. Depreciation –Automobile$22,000
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