Difference between balance sheet and trial balance
Answers
Trial balance is created to record all balance of ledger account balance sheet is created to shee whether these assets equial liabilities plus equial
Explanation:
Trial Balance vs Balance sheetTrial Balance is a part of the accounting process, which is a schedule of debit and credit balances taken from all the ledger accounts. As every transaction affect two sides, i.e. every debit has a corresponding credit and the reverse is also true. The total of debit and credit balances are equal in the trial balance. In contrast, the Balance Sheet is the statement that exhibits the company’s financial position, by summarizing the assets, liabilities, and capital on a particular date.
In general, the trial balance is prepared at the end of the month or at the end of the accounting period, i.e. it can be prepared as per the requirement of the entity. On the other hand, balance sheet is prepared only at the end of the accounting period. So, here in this article, we are going to talk about the differences between trial balance and balance sheet, take a read.
Meaning Trial Balance is the list of all balances of General Ledger Account. The Balance sheet is the statement which shows the assets, equity and liabilities of the company.
Division Debit and Credit columns Assets and equity & liabilities heads
Stock Opening stock is considered. Closing stock is considered.
Part of Financial Statement No Yes
Objective To check the arithmetical accuracy in recording and posting. To ascertain the financial position of the company on a particular date.
Balances Personal, real and nominal account are shown. Personal and real account are shown.
Preparation At the end of each month, quarter, half year or financial year. At the end of the financial year.
Use Internal Use External Use