Sign In

For the sake of quality, our forum is currently "Restricted" to invitation-only. In case if you wish to join our forum, please send an email seeking an invitation to "[email protected]".

Forgot Password

Lost your password? Please enter your email address. You will receive a link and will create a new password via email.

Captcha Click on image to update the captcha.

You must login to ask question.

What is the Difference Between Balance Sheet and Trial Balance?

Balance Sheet Vs Trial Balance

Balance Sheet

1. It is a statement that shows a detailed listing of assets, liabilities, and capital demonstrating the financial condition of a company on a given date.

2. The purpose of preparing a balance sheet is to show the financial position of a business.

3. A balance sheet is mandatory to be prepared by law and to complete the accounting cycle.

4. Closing stock is shown on the balance sheet as an asset.

5. A balance sheet is mainly divided into two heads: Assets and Liabilities.

6. It accommodates only personal and real accounts, nominal accounts are not included.

7. A balance sheet can only be made when all accrual entries (prepaid and outstanding) have been adjusted.

Related Topic – What is Balance B\F and Balance C\F?


Trial Balance

1. It is a statement of debit and credit balances that are extracted from ledger accounts on a specific date.

2. The purpose of preparing a trial balance is to ascertain the accuracy of the books of accounts.

3. A trial balance is not mandatory to be prepared according to the law.

4. .Closing stock is not usually shown in the trial balance.

5. A trial balance is divided into two-column heads: Debit and Credit.

6. It accommodates all accounts: real, personal and nominal.

7. A trial balance can be prepared without making any adjustments.

The above-mentioned differences between Balance Sheet and Trial Balance are related to their purpose, format, content, stage in accounting, exceptions, etc.


>Read Final Accounts