RE 5.400 7.000 Advantages of Worksheet 51 The Worksheet offers following advantages: 6) It brings together the Trial Balance and the adjusting data. Thus, it reduces the chances of errors and at the same time assists the location of errors which may be made in adjusting, closing and balancing account. (i) It classifies and summarises the information shown by the Trial Balance and the adjusting data. It thus, facilitates preparation of Final Accounts and passing of closing entries. (ii) The net results of the business operations are known even before preparing formal Final Financial Statements. It makes possible the preparation of the statements during the financial period without the necessity of formal adjusting and closing entries. Thus, Worksheet is extremely useful for the management since it furnished a quick means of determining the business results. Illustration 6.25. From the following Trial Balance and additional information, you are required to prepare a Worksheet and Final Accounts. TRIAL BALANCE as on 31st December 1999 Particulars Dr. Amount Ct. Amount RS Capital 20,000 Sundry Debtors Drawings 1.800 Machinery Sundry Creditors 2.800 Wages Purchases Opening Stock Bank Balance 3.000 Carriage Charges Salaries Rent and Taxes Sales 29,000 51.800 51,800 Additional Information (0) Closing Stock Rs 1,200. (ii) Outstanding Rent and Taxes Rs 100. (in) Charge depreciation on machinery at 10%. (iv) Wages prepaid Rs 400 TRADING AND PROFIT AND LOSS ACCOUNT for the year ending 31st December, 1999 Particulars To Opening Stock 4,000 By Sales 29,000 To Adjusted Purchases 17,800 By Gross Loss c/d To Wages To Carriage 10,000 19.000 4,000 300 400 900 Particulars Amount Rs Amount Rs 2.700 9,600 300 31.700 2,700 400 1.000 700 4.800 31,700 4.800 To Gross Loss b/d To Salaries To Rent and Taxes To Depreciation on Machinery By Net Loss taken to Capital Alc 4.800