Worksheet Guidelines

For Trial Balance (Source General Ledger)

1. Write the account number and account names of ledger account that is non-zero balance (from
cash to expenses).
2. Write the amount (balance ) in their respective debit or credit column,
 All assets (account no beginning 1) debit EXCEPT accumulated depreciation which is
credit
 All Payables credit
 Revenue credit
 Expenses debit.
 Input VAT debit;
 Output VAT Credit
 Sales, Purchase Returns and Allowances, Purchase Discount Credit
 Purchases, Sales Returns and Allowances, Debit
 Capital and Retained Earnings Debit
 Withdrawals debit
3. Get the total of each column. (they have to be equal) (write the word TOTAL at account title
column slightly indented)

Adjustment column

a. Adjustment for utilities. Write Utilities Expense and Credit Utilities Payable below the total. Get
the total of the excess check voucher for Water and Electricity. Write the amount on the debit
side of utilities expense and credit on utilities payable. Write a) on the extreme left of the
amounts (both debit and credit amount)
b. Adjustment for the SSS, Philhealth and Pagibig Contribution (Employer’s Share). Debit to SSS,
PhilHealth and Pagibig Contribution and Credit to SSS, PhilHealth and Pagibig Payable. The
source for the amount is the excess receipt for SSS, PH and Pagibig. Write b).
c. Adjustment for Depreciation of equipments. Debit to Depreciation Expense - <equipment to
depreciate> and credit to Accumulated Depreciation-<equipment to depreciate> The amount is
computed based as follows: (Cost of Asset (equipment) x .1)/12. Write c). Note: for
merchandising two equipment are depreciated so this will be c and d.
d. Adjustment of Percentage Tax. (Service Business only). Debit to Percentage Tax Expense and
credit to Accrued Percentage Tax. The amount is computed as follows: Total Revenue x .03.
Write d).
e. Adjustment for Dividends Payable (Merchandising only). Debit to Retained Earnings and credit
to Cash Dividends Payable. Get the amount on the excess source document for dividends.
Write e).
Income Statement Column

For Service Business:

1. Copy to the income statement credit column the Revenue amount.

2. Copy to the income statement debit column all the expenses.
3. Get the total of its column. It is normal that the two columns are not equal, credit being greater.
Note: Write TOTAL in the account names column.
4. Get the difference of the totals and write the amount on the debit side. Note: Write Net
Income on the account name column.
5. Again get the total of each column

For Merchandising Business:

1. Write the Merchandise Inventory amount on the debit side then write the ending merchandise
inventory (located at the additional information of the problem set)
2. Copy to its respective debit or credit column the Sales and sales related accounts (SRA and SD),
Purchases and purchase related accounts (PRA and PD).
3. Copy to the debit side all expenses including the expenses in the adjustment columns)
4. Get the total of its column. It is normal that the two columns are not equal, credit being greater.
Note: Write TOTAL in the account names column.
5. Get the difference of the totals and write the amount on the debit side. Note: Write Net
Income on the account name column.
6. Again get the total of each column

Balance Sheet Column

1. Copy to its respective debit or credit columns in the Balance Sheet all accounts that are not
extended to the Income Statement Column. If the an account has an amount in the adjustment
column, add the amounts if both are one the same side (debit-debit, credit-credit) and write
the amount on column the both coincide. If they are on the opposite side, subtract then write
the difference on the column with bigger amount.
2. For Merchandising, write the ending merchandise inventory at the debit side of balance sheet.
3. Get the total of its column. It is normal that the two columns are not equal, Debit being greater.
4. Write the net income amount in the income statement in the credit side of the balance sheet.
5. Again get the total of each column. It has to be equal.