Question

Distinguish between Trial Balance and Balance-Sheet.

Answer 1

Distinguish between Trial Balance and Balance-Sheet :

$\begin{array}{cccc}& \text{Trial Balance}& & \text{Balance Sheet}\\ \text{1.}& \text{Trial Balance is prepared to check the}& \text{1.}& \text{Balance sheet is prepared to show the}\\ & \text{arithmetical accuracy of the accounting}& & \text{financial soundness of the organisation.}\\ & \text{process}& & \\ \text{2.}& \text{In Trial Balance, Balances of all the}& \text{2.}& \text{In Balance Sheet, Balances of Assets and}\\ & \text{accounts are written.}& & \text{Liabilities are recorded.}\\ \text{3.}& \text{Trial Balance is prepared from ledger}& \text{3.}& \text{Balance sheet is prepared from trial}\\ & \text{accounts.}& & \text{balance.}\\ \text{4.}& \text{All the revenue and capital nature accounts}& 4.& \text{In balance sheet, only capital nature}\\ & \text{are shown in trial balance.}& & \text{accounts are shown.}\end{array}$