FUNDAMENTA

LS OF
ACCOUNTANC
Y BUSINESS
MANAGEMEN
T1
Quarter 4 – Lesson 5
WORKSHEET
-
SERVICE
BUSINESS
Mrs. Rubyrosa C. Nazal
 1. PREPARING THE ADJUSTED
TRIAL BALANCE
After all the adjusting entries and postings have been
journalized and posted, the accountant may now prepare the
adjusted trial balance. The main difference of adjusted trial
balance to the unadjusted trial balance is the amounts are
already adjusted to its correct figures. The accounts which are
not previously included in the trial balance are now listed in
the adjusted trial balance.
PREPARING THE
ADJUSTED TRIAL
BALANCE
Given is the trial balance of Matulungin Service Company for the year
ended December 31, 2019.

 At year end the following

adjustments take place:
1. accrued interest in notes payable
amounted to P500.
2. inventory of supplies amounted to
P1,000.
3. depreciation for equipment
amounted to P1,000.

After journalizing and posting the adjusting entries, we can derive the
updated balances of each account using a worksheet.
Enter all the adjustments in the
column for adjustments. If the
account title is not included in the
trial balance, list down the
accounts used following the totals
of the trial balance.
Combine the account balances horizontally line by
line. If the account has no adjustment just copy the
amount and put it in its proper debit or credit
balances. Examples are the account of Cash and
Accounts Payable.
Supplies account has a debit balance of P5,000 in
the trial balance but it has a credit balance of P4,000
in the adjustments’ column. Subtract the balances
and put the difference in the debit or credit balance
column whichever is higher. The balance should be
in the normal account balance of the account. Just
do this until the end and get the total debit and
credit columns.
From the worksheet, you may now
derive a more organized adjusted
trial balance. In this adjusted trial
balance, notice that the accounts
are arranged properly, from assets
to expanse accounts. Accounts
which have an open balance are
presented.
THANK YOU FOR
LISTENING!