WORKSHEET

The work hour is a accounting paper used by accountants to summarize all the information in it.
accounting of the activities carried out by the company during a specified period. The Worksheet allows for verification
the accuracy of the accounting records, make the necessary corrections, make the adjustments, and prepare the information with the
which will be prepared the Financial Statements.

The worksheet is a tool that the accountant uses to arrange data logically; it is not for
the use of the manager is not for publication; it is drafted in pencil so that it can be erased and corrected as it is being prepared.

Structure of the worksheet

The worksheet has a very simple structure in terms of its design, comprising several pairs of columns that vary.
according to the nature of the company or economic activity to which it is dedicated, which is why the use of is generally employed
twelve (12) column accounting sheets. For illustrative purposes, we will refer to a simple working paper of a
service company.

This accounting instrument contains, first of all, a heading that indicates:

a) Company Name.
The express name of "WORKSHEET".
c) The period of the accounting cycle that it covers.

Secondly, understand its columnar structure; this part is composed of:

1. A column to write the titles of the accounts.

2. Six (6) pairs of columns with the following headings:
a) Trial Balance.
b) Adjustments.
c) Adjusted Trial Balance.
d) Cost of Sales.
e) Statement of Income and Expenses.
f) Balance Sheet.

Es importante señalar que se debe mantener el orden de las columnas señalados en el punto 2. , ya que el resultado de los
adjustments directly affect the final balance of the General Balance, meaning the result of one column leads to the
another.

To create a concrete example of the worksheet, with the characteristics mentioned so far, except that we will go by
step, that is from the simplest to the most complex, so in this example we will not use the point related to Settings and
the Adjusted Trial Balance, let us take the following Trial Balance of 'WE ARE THE BEST',
corresponding to the first half of 2010.
 Trial Balance

As of June 30, 2010

Box 50,000
Bank 200,000
Accounts Receivable 300,000
Rental Expenses 60,000
Expenses for Commissions 178,000
Capital 1.122.000
Accounts Payable 145,000
Income from tickets 800,000
Furniture 130,000
Facilities 960,000
Office Equipment 86,000
Effects to be Paid 40,000
Interest Income 5,000
Various Incomes 12.000
Municipal Taxes 13,000
Wages and Salaries Expenses 80.000
Maintenance Expenses 67,000
Equal Sums 2.124.000 2.124.000
 WE ARE THE BEST
Worksheet
From 01-01-2010 to 30-06-2010

ACCOUNT Trial Balance GAINS AND LOSSES BALANCE SHEET

THERE MUST BE
EGRESOS INGRESOS ASSETS LIABILITIES + CAPITAL
1 Box 50,000 50,000
2 Bank 200,000 200,000
3 Accounts Receivable 300,000 300,000
4 Rental Expenses 60,000 60,000
5 Commission Expenses 178,000 178.000
6 Capital 1.122.000 1,122,000
7 Accounts Payable 145,000 145,000
8 Income from tickets 800,000 800,000
9 Furniture 130,000 130,000
10 Facilities 960,000 960,000
11Office Team 86,000 86.000
12 Effects to be Paid 40,000 40,000
13 Interest Income 5,000 5,000
14Various Income 12,000 12,000
15 Municipal Taxes 13,000 13,000
16 Salaries and Wages Expenses 80,000 80,000
17Gastos de Mantenimiento 67,000 67,000
Equal Sums 2.124.000 2,124,000 398,000 817,000
19 419,000 419,000
20 817,000 817,000 1.726.000 1.726.000
21
22
23
24
This Trial Balance, prepared with the information recorded in the General Ledger of the company 'WE ARE
THE BEST

a) In the column reserved for account titles, each of the accounts that make up the Balance is recorded.
Verification.
b) The amount of each account is recorded in the 'Trial Balance' section; debit balances are noted in the
left column and the credit balances in the right column.
c) Once the records from the previous step are completed, the debtor and creditor balances are totaled again.
to verify the equality of both sums.

Once the equality of balances in the columns of the Trial Balance has been verified, the accounts are classified.
“Nominales” y “Reales”. En la sección “Ganancias y Pérdidas” se anotan los montos de los saldos de las cuentas nominales:
Income and Expenses, with special care to record the income in the right column of the section and the expenses in
the left column of the same section.

At the end of the entries in the 'Profits and Losses' section, the sum of each column is determined. If the
the sum of the Revenue column is greater than the sum of the Expenses column, the difference represents the Profit
obtained in the period. Otherwise, if the sum of the Expenses is greater than the sum of the Income, the difference
represents a Loss during the period.

In the example we have been developing, a profit of Bs. 419,000 was determined; that amount is noted below.
of the total expenditures, with the purpose of achieving an equality in the sum of both columns of the section of 'Earnings and
Losses.

At the conclusion of the 'Gains and Losses' phase, the balances of the Real accounts are transferred to the 'Balance' section.
General", taking special care to record the Assets in the left column of the section, and the Liabilities and Capital in
the right column of the same section.

Once the balances are transferred to the respective columns of the 'Balance Sheet' section, the transfer proceeds.
from the balance obtained in the "Gains and Losses" section, maintaining its debit or credit characteristic; that is, if
there was profit, the balance is a credit and its amount is transferred to the right column of the 'Balance Sheet' section; if there was
a Loss, the balance is Debtor and its amount is transferred to the left column of the referred section.

The worksheet is concluded with the total of the balances of each column in the 'Balance' section.
General. The pit of this last pair of columns will be equal, provided that the procedures for the transfer of the
balances in each column and section have been correct.

Once the worksheet is completed, that information is used to prepare the Financial Statements: Statement of
Profits and Losses and the Balance Sheet. These financial statements are two important documents to prepare.
company accountant, to be presented to the administrators and owners (shareholders) of the company.

The Income Statement shows a summary report of the economic results obtained by the company.
during a certain economic cycle. The Balance Sheet shows a classified summary of the equity values
what resources the company has at the time of preparing such report.
EXERCISE GUIDE:

Prepare the work sheet for 'OVERCOMING', corresponding to the economic period from 01-01-
2009 to 31-12-2009. At the end of the financial year, the accounts recorded in the General Ledger have the following balances:

Cash in Register 15,000

Bank 50,000
Installations 100,000
Machines and equipment 1,500,000
Capital 700,000
Accounts Payable 50,000
Bank loan payable 500,000
Commissions payable 7,000
Expenses for Salaries and Wages 80,000
Rental Expenses 100,000
Advertising Expenses 160,000
Maintenance of Machines and Equipment 56,000
Public Services Expenses 89,000
Accounts Receivable 26.800
Income from Laundry Services 974,000
Furniture 69.200
Municipal Taxes Payable 5,000
Rents Payable 10,000

No. 2 With the following information taken from the general ledger of 'INTEGRAL CONSULTANTS', it is requested to prepare the
corresponding worksheet for the exercise of the year 2010.

Furniture 130.000
Facilities and Equipment 1.050.000
Bank/Checking account 60,000
Box 32,000
Capital 800,000
Commercial premises 1.600.000
Mortgage Payable 1.200.000
Materials and accessories 191.800
Accounts Payable 32.000
Income from Business Consulting 1.323.600
Commissions Payable 13,000
Public Services Payable 5,000
Other Income 16.500
Employee Salary Expenses 110.400
Advertising Expenses 96.100
Accounts Receivable 23,000
Interest Expenses 1.300
Expenses for Materials and Accessories 42.500
Miscellaneous Administrative Expenses 23,000
Expenses for Commissions 30,000
No. 3 The following describes several business transactions carried out by the architect and consultant Carlos Delgado,
during the month of May. It is requested to prepare the corresponding entries in the Journal, postings to the General Ledger, Balance
of Verification and Worksheet.

May:

01 Establishes its technical office with a contribution of Bs.520,000 in cash.

Open a checking account with Bs. 500,000 at a local bank.
Issues check No. 124301 for Bs. 25,000; to settle various administrative expenses.
04 Acquires office equipment for Bs.65,000; pays with check No.124302.
On this date, a consulting job was completed, having charged fees of Bs. 18,000.
David Ojeda was presented with an invoice for Bs.29,000 for consulting work completed on this date.
I agree to pay within 10 days.
Issues check No. 124303 for Bs.8,200 to the company 'Estenographic Services' for various expenses.
office.
Bs. 3,600 was paid for the secretary's salary, check No. 124304.
19 David Ojeda cancels the invoice amount from the 10th.
Today a consulting job was completed; the invoice amount is Bs.34,000. The client, 'School Architects,'
C.A. promised to make the payment within 30 days.
Issues check No. 124305 for Bs. 2,560, to cover various administrative expenses.
Bs.3,800 was paid in cash for travel expenses.
Bs. 18,000 was paid for advertising announcements, with check Nº124306.
24 Acquires furniture for the office, for Bs.100,000, pays with check No.124307.
Issuance of check No. 124308 for Bs. 3,600, to pay the salary of the secretary.
Pay Bs.3,500 to 'Fuller, S.A' for maintenance services and paid with check No.124309.
A bill for Bs.3,400 was canceled in cash to the company 'Stenographic Services' for various office expenses.
30 Receives Bs.45,000 for various services rendered.
30 Issues check No. 124310 for Bs. 14,000 to pay for the condominium of the office premises.
30 Issues checks No. 124311 and No. 124312, for Bs. 2,340 each, to pay for public services for the month.
30 A consultancy job agreed at Bs.26,000 has been completed, which will be charged within 15 days.
31 Make a bank deposit of Bs. 50,000.

No. 4 The Trial Balance in the company 'DISTRIBUTOR EVERYTHING IS EASY' was prepared by an assistant
accounting, which had little experience. The balances of the accounts taken from the General Ledger are correct, without
embargo, the Balance does not add up. The head of accounting checked the draft submitted by his assistant and found that
Both columns of the balance must add up to Bs.2,800,000.

Below is the draft prepared by the assistant. You were hired to analyze it as well.
find the errors made by the assistant, then properly prepare the Trial Balance, which must
match the amount obtained by the chief accountant.
 EVERYTHING IS EASY DISTRIBUTOR

Trial Balance

Bank 380.884
Box 52.300
Accounts Receivable 586.456
Sales 1,386,000
Advertising expenses 132,000
Cuentas por Pagar 295,000
Office Equipment 249.380
Expenses for salaries and wages 274,000
Salaries Payable 38,000
Capital 800,000
Office supplies 21.300
Inventory of goods 874.380
Interest Income 12.670
Commissions payable 26.934
Expenses for Services 94.300
Deposit given as Guarantee 50,000
Rental Expenses 85.000
Bank loan payable 230,000
Bonds Payable 11.396
Equal Sums Bs. 4,810,700 Bs. 789.300
ACCOUNTING ADJUSTMENTS AND RECLASSIFICATIONS

Many times we have heard about adjustments and/or reclassifications in accounting, but we do not know what the difference is.
or when to apply it. At this point in UNIT I, each of them is explained, and then we proceed with the Sheets.
Adjusting Journal Entries and Adjusted Trial Balance.

ADJUSTMENTS: In the accounting process (manual and even electronic), errors, omissions, and outdated information are filtered.
other situations that affect the reasonableness of the accounts. In light of these facts, accounting technique has developed the
methodology called adjustments.

Adjustments allow for reasonable balances to be presented through timely and appropriate clearing of all accounts that,
for various reasons, they do not present values that can be verified and, therefore, do not reflect the true situation and
current state of the business or company.

Appropriate time and place to record the adjustments.

Adjustments should be recorded as soon as the error, omission, or outdated information is evident; however, some prefer
adjust the accounts in bulk, that is, at the end of the month or at the end of the year, as an important prerequisite for preparing the statements
financial

It is recorded in the form of an entry, which will meet all the technical requirements specified in this formula, demanding
source documentation or at least, spreadsheets or technical and documentary references related to the entry.

The legal and technical basis for justifying the entries is provided in tax laws, corporate laws, and their regulations, as well as
in standards and concepts that regulate the calculation, presentation, and disclosure of adjustments.

The most common adjustments are for:

Omissions
Errors
Misuse
Fortuitous losses
Prepaid and precharged
Pending payments and collections, respectively.
Depreciation of property, plant, and equipment
Provisions for possible uncollectibles
Amortization of deferred charges, and more.

RECLASSIFICATIONS: The reclassification of an account consists of the fact that the balance of the account to be reclassified must be
transferred from one account to another, so that the presentation of the financial statements and the information
accounting should be as appropriate as possible.

The need to reclassify an account generally arises when the balance of that account is contrary to that of its
nature. Example: the asset accounts are of a debit nature, then, if at the end of the period there is any account remaining
with a contrary balance; that is to say, Creditor, as it will need to be reclassified since it cannot be presented like this.

Una vez que se trabajan con asientos de ajustes o reclasificaciones, se puede hacer el uso de la Hoja de Trabajo de doce (12)
columns. A worksheet of this type is presented below:
 WORKSHEET STRUCTURE 12 COLUMNS

BALANCE OF ADJUSTMENTS BALANCE OF COST OF SALES EARNINGS AND BALANCE SHEET

CHECK CHECK LOSSES
ACCOUNT ADJUSTED
MUST NEWS MUST NEWS SHOULD NEWS SHOULD NEWS EGRESOS INGRESOS ACTIVOSPASSIVE
CAPITAL
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
EXERCISE: The company 'INCREASINGLY COMPLICATED, C.A.' showed the following as of December 31, 2010
balances of your accounts in the General Ledger:

Bank 20,000
Accounts Receivable 75,000
Provision for Bad Debts 12,000
Furniture 8,000
Computer Equipment 13,500
Building 200,000
Land 100,000
Accounts Payable 32,000
Accounts Receivable Shareholders 25,000
Returns in Sales 5.300
Returns in Purchases 7.800
Salaries of Salespeople 16,000
Sales Freight 14.000
General Expenses 3,000
Tax Expenses 2.200
Interest paid 700
Petty Cash (Fund) 2.000
Receivables 20,000
Inventory of Goods (i) 35,000
Accumulated Depreciation of Furniture 620
Deprecation. Current Equipment 2.800
Deprec. Demolition of the Building 8,000
Effects to Pay 27,000
Capital 360,000
Sales 260,000
Purchases 145,000
Freights in Purchases 5.200
Advertising 7.000
Office staff salaries 8.500
Office expenses 3.800
Insurance expenses 2.400
Earned interest 1.380
ADDITIONAL INFORMATION:

a) The final inventory of goods amounts to Bs. 23,000

b) Depreciations will be: 1) 10% for furniture and, 2) 25% for equipment. 3) A value is estimated for the building.
useful life of 25 years with no residual value.
c) The allowance for doubtful accounts must be increased by 1% of net sales, by administrative decision.
d) The prepaid expenses are:
Current insurance policy Bs. 540.
Desk items Bs.300.
The following accumulated expenses are due:
Sueldos de vendedores Bs. 800.
Social Security Bs. 45.

IT IS ASKED:

1. Prepare the Adjustment Entries in the Journal.

2. Prepare a 12-column worksheet.
3. Prepare Closing Entries.