Question

What is the difference between trial balance and balance sheet ?

Answer 1

Dear Student,
The following points differentiate the Trial Balance and Balance Sheet.

S.No.	Trial Balance	Balance sheet
	Prepared to check the arithmetical accuracy of the ledger accounts.	Prepared to know the financial position of the business.
	Shows the summary of accounts	Shows the assets and liabilities of the business.
	It is prepared after balancing of ledger accounts.	It is prepared after Trading and Profit and Loss A/c
	It is the base for preparing financial statement.	It is the last financial statement of the business.