How to Prepare Work Sheet

In order to prepare the work sheet, the only requirement is the that you input the right figure into the right side. You need to follow the following steps to perform this task:

  1. Enter the figures from unadjusted trial balance into the trial balance column,
  2. Enter the adjusting figures into the adjustment column,
  3. Enter the adjusted figures gained from above two columns into the Adjusted trail balance column,
  4. Now, it is the time to extend the adjusted trial balance figures into the income statement. This step is just the classification of head of accounts into income statement items.
  5. In the last colum of Balance, you need to sum up the statemnent colum and calculate the net profit or lossarising on doing the business.