There are various systems of accounting that can be applied by any entity while maintaining accounting system. Fundamentally, there are two systems of accounting viz. cash basis and accrual basis which are directly associated with the type and nature of entity. They have their own pros and cons; however, accrual basis of accounting system is more suitable for business entities from income recognition and measurement point of view. Work sheet is a useful device adopted by accountants to determine financial status and result of such business entities based on accrual basis. In this regard, justify that work sheet is merely a tool rather than substitution of financial statements with reference to accounting process.