How to Adjust a Work Sheet in Accounting
When you want to review your current business expenses and reporting, it is not necessary to wait for your end-of-cycle reporting. Accounting worksheets provide a method to manipulate your account balances for pending adjustments, without impacting the ledger accounts. When you need to understand the impact of transactions, this is an ideal method to manipulate figures. Start with the existing balances in your ledger and add pending adjustments for a look at your adjusted trial figures.
Other People Are Reading
Instructions
-
-
1
Review the trial balances listed on the worksheet. Identify the accounts that have outstanding adjustments, amortizations or accruals. An example includes amortizing prepaid accounts, increasing an expense account for the monthly amortization. Alternatively, you may need to increase an expense account for a charge that has not been paid, one that you plan to accrue.
-
2
Enter the amount of any adjustments in the appropriate debit or credit field of the "Adjustments" columns. Increase liability accounts with a debit, and decrease them with a credit. Increase asset accounts with a credit, and decrease them with a debit.
-
-
3
Populate the "Adjusted Trial Balance" columns with a sum of the trial balance and all of the adjustment columns. Input the balance of each account from the "Adjusted Trial Balance" column into the proper column under the "Balance Sheet," "Income Statement" or "Retained Earnings Statement" to complete the worksheet.
-
1
