Preparation of Worksheet

Written by True Tamplin, BSc, CEPF®

Reviewed by Subject Matter Experts

Updated on May 02, 2023

This article explains the procedure for preparing a worksheet for the following types of business:

  • Service rendering concerns
  • Trading concerns

Preparation of Worksheet for Service Rendering Concerns

Service rendering concerns are businesses that earn revenue from rendering services. The worksheet procedure for a service rendering concern is explained using the following example.


Assuming that the books are closed monthly, prepare a worksheet for John Dry Cleaning Services from the following trial balances and adjustments on 30 April 2017:

  • Cash $8,460
  • Capital $10,015
  • Unexpired rent $1,200
  • Salaries paid $2.005
  • Revenue from services $5,250
  • Insurance expense paid in advance $500
  • Supplies in hand $2,000
  • Furniture $2,100
  • Equipment $4,000
  • Accounts payable $1,000
  • Telephone charges $1,000
  • Electricity charges $150

The adjustments are as follows:

  • Unexpired rent $1,000
  • Unpaid salaries $195
  • Services revenue receivable $750
  • Insurance expense for the month $200
  • Supplies consumed $500


Adjusting Entries Solution 1
Worksheet Solution 1

Preparation of Worksheet for Trading Concerns

Trading concerns are businesses that deal in selling and buying merchandise. In trading concerns, merchandise is purchased from the wholesale market or direct from the producer.

Merchandise is sold in the retail market at comparatively higher prices. Trading concerns derive a major part of their income from buying and selling merchandise rather than from rendering services.


From the trial balance and adjustments shown below, prepare a worksheet.

Trial Balance For Trading Concern

Adjustments are as follows:

  • Closing inventory $2,500
  • Rent expenses $500
  • Depreciation charged on machinery $2,400
  • Advertisement payable $700
  • Rent earned $400


Adjusting Entries Solution 2
Worksheet Solution 2

Preparation of Worksheet FAQs

About the Author

True Tamplin, BSc, CEPF®

True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists.

True is a Certified Educator in Personal Finance (CEPF®), author of The Handy Financial Ratios Guide, a member of the Society for Advancing Business Editing and Writing, contributes to his financial education site, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University, where he received a bachelor of science in business and data analytics.

To learn more about True, visit his personal website, view his author profile on Amazon, or check out his speaker profile on the CFA Institute website.