What is the difference between trial balance and balance sheet?

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Solution

The difference between trial balance and balance sheet is that trial balance is not a part of financial statements while the balance sheet is one of the financial statements.

Also read:

MCQs on Trial Balance

Difference Between Trial Balance and Balance Sheet

How to Prepare Trial Balance

Trading and Profit and Loss Account

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What kinds of errors would cause difference in the trial balance? Also list examples that would not be revealed by a trial balance?

From the following trial balance of Mr. A. Lal, prepare trading, profit and loss account and balance sheet as on March 31, 2017.

Account Title	Debit Amount Rs	Credit Amount Rs
Stock as on April 01, 2016	16,000
Purchases and Sales	67,600	1,12,000
Returns inwards and outwards	4,600	3,200
Carriage inwards	1,400
General expenses	2,400
Bad debts	600
Discount received		1,400
Bank over draft		10,000
Interest on bank overdraft	600
Commission received		1,800
Insurance and taxes	4,000
Scooter expenses	200
Salaries	8,800
Cash in hand	4,000
Scooter	8,000
Furniture	5,200
Building	65,000
Debtors and Creditors	6,000	16,000
Capital		50,000

Closing stock Rs 15,000.

Difference between trial balance and balance sheet.

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