Difference between trial balance and balance sheet.
Difference between trial balance and balance sheet.
Trial Balance vs Balance Sheet
Trial Balance is a statement prepared with debit and credit balances of ledger accounts to test the arithmetical accuracy of the books. And the Balance Sheet is a financial statement that summarizes a company's assets, liabilities and capital at a specific point of time.
The difference between the two is:
Trial balance includes balances from all the accounts prepared in the general ledger while the balance sheet includes only the relevant data from the asset, liability and capital accounts.
Also,Trial balance is an internal document used by the accounting personnel to verify that accounting entries have been entered accurately. The balance sheet is an external document available for company’s stakeholders and the general public to obtain an understanding of the company’s financial performance.
And,The trial balance is prepared first, while the balance sheet is prepared last after the profit and loss statement has been drawn up.
Trial Balance vs Balance Sheet
Trial Balance is a statement prepared with debit and credit balances of ledger accounts to test the arithmetical accuracy of the books. And the Balance Sheet is a financial statement that summarizes a company's assets, liabilities and capital at a specific point of time.
The difference between the two is:
Trial balance includes balances from all the accounts prepared in the general ledger while the balance sheet includes only the relevant data from the asset, liability and capital accounts.
Also,Trial balance is an internal document used by the accounting personnel to verify that accounting entries have been entered accurately. The balance sheet is an external document available for company’s stakeholders and the general public to obtain an understanding of the company’s financial performance.
And,The trial balance is prepared first, while the balance sheet is prepared last after the profit and loss statement has been drawn up.
