Difference Between Trial Balance and Balance Sheet

Trial Balance vs Balance Sheet

What is Trial Balance?

Trial Balance is a statement which accounts all the balances of the Personal account, Real account and Nominal account regardless of either Revenue or Capital A/c. It comprises of 2 columns viz., debit and credit. If the transactions are documented systematically by providing dual sided effect and later posted methodically, then the sum total of both the columns would be similar.

What is Balance Sheet?

A Balance Sheet is a statement which shows the liabilities, assets and shareholder’s equity of the enterprise. This statement comprises of 2 major groups in which it is categorised, namely, assets, which is classified into Non – Current Assets and Current assets. Current Assets are such assets which are easily transformed into cash. On the other hand, the Non – Current Assets are such types of assets with the assistance of which the enterprise operates the enterprise.

This article is a ready reckoner for all the students to learn the difference between Trial Balance and Balance Sheet :

Basis Trial Balance Balance Sheet
Meaning Trial Balance is a statement which accounts all the balances of the Personal account, Real account and Nominal account regardless of either Revenue or Capital A/c A Balance Sheet is a statement which shows the liabilities, assets and shareholder’s equity of the enterprise. This statement comprises of 2 major heads in which it is categorised :One is assets, which is classified into Non – Current Assets and Current assets
Stock Opening stock is contemplated Closing stock is contemplated
Division Debit and Credit Assets and Liabilities
Part of Financial Statement No Yes
Balance Nominal, Real and Personal account are shown Real and personal account are shown
Objectives To monitor the arithmetical accuracy is documenting and posting the data To determine the financial position of the enterprise on a specific date
Use Internal use External use
Preparation During the closure of each month, quarter, half year or financial year During the closure of the financial year

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