Explain the required steps to complete a work sheet by placing the following steps in the correct order. (Put the first step at the top.)
Instructions
Choice 1 of 5. Total financial statement columns, compute income or loss and balance columns. toggle button Total financial statement columns, compute income or loss and balance columns.
Choice 2 of 5. Enter unadjusted trial balance. toggle button Enter unadjusted trial balance.
Choice 3 of 5. Sort adjusted trial balance amounts to financial statements. toggle button Sort adjusted trial balance amounts to financial statements.
Choice 4 of 5. Enter adjustments. toggle button Enter adjustments.
Choice 5 of 5. Prepare adjusted trial balance. toggle button Prepare adjusted trial balance.

Trial balance is an unadjusted table that shows the balances from all the ledger accounts of the organization during a financial period.

A trial balance is such table which is used for the preparation of P&L account, trading accounts and balance sheet for the firm as on the financial year-end date.

Firstly, all the ledger account balances are noted down in the trial balance following the entering of adjustments of financial events that took place during the year and were unrecorded.

After such adjustments are made, an adjusted trial balance is prepared, which is followed by sorting such trial balances into different accounts like trading account and profit and loss account.

A balance sheet is prepared which includes the assets, equities and liabilities of the organization where the total assets are equal to the amount of equities and liabilities of such organization.

In this way, an unadjusted and unrecorded incomplete trial balance is used for the preparation of financial statements of the organization as on the end of the financial period.

Hence, the correct order of preparation of trial balance is as B-D-E-C-A.

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