Work Sheet

In accounting, the work sheet is often described as a loose leaf piece of stationery from the columnar pad, as opposed to one which has been attached into the actual ledger book. Later, the term was extended to assign a single, two-dimensional collection of data within the computerized spreadsheet program. The most common kinds of worksheets used in the business contain financial reports such as P/L statements. Investors, accountants and analysts track a firm's balance sheets, financial reports, and other information on the worksheets.

A worksheet is the multiple column sheet used in the adjustment process and in preparing financial statements. As its name suggest, a work sheet is a working tool. It is not a stable or permanent accounting record. It is neither a journal nor part of the ledger. The work sheet is merely a device used in adjusting entries and financial statements. Companies generally computerize work sheet using an electronic spreadsheet programs such as Excel. In the Excel, a single document is called as a workbook and by default every book includes three worksheets or arrays.  One of the main uses of such type of programs is that they could have formulae therefore if one cell value is changed; the complete document is automatically updated according to those formulae.

There are five steps for preparing work sheet and each step is performed in sequence. The use of the work sheet is optional.  When a company chooses to use, it prepares financial statements from the work sheet. It enters the adjustments in the work sheet columns and then journalizes and posts the adjustments after it has prepared the financial statements. Thus work sheets make it possible to provide the financial statement to management and other interested parties at an earlier date.

Questionnaire:   

• What is Work sheet?
• What are the uses of work sheet?