From Which Columns Of Worksheet, Adjusting Entries Information Is Obtained

Where Is The Information Obtained To Journalize Adjusting Entries And Why Are Adjusting Entries Journalized? / Which Columns Of Worksheet Is Used To Obtain Information About Adjusting Entries

It is the Worksheet i.e., the adjustment columns of worksheet, which provides the information about Adjusting Entries needed to be journalized in order to update general ledgers’account balances at the end of the accounting period.

Actually, worksheet provides a summary of different types of special ledgers and master or general ledgers’account balances before the preparation of Financial Statements. Worksheet also provides information about adjusting entries related to different ledgers’ accounts balances that need to be updated at the end of the accounting period.

So, we can say that if you want to obtain information related to adjusting entries, then correct worksheet provides such information so that we update the general or master ledgers’ account balances at the end of the accounting period.

Adjusting entries are journalized to update the accounts balances at the end of the accounting period according to Accrual Concept in order to match revenues with those expenses incurred in earning revenues of the same period.