Question

Distinction between trial balance and balance sheet

Answer 1

Answer:

Explanation:

Trial 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.

Answer 2

Answer:

trial balance: balance sheet.

BASIS:

NATURE

1. Trial balance is the list of ledger balance 1. balance sheet is a statement showing the

on a particular date. position of asserts and liabilities on a particular

date

PURPOSE

1. it is prepared to check the arithmetical. 2. it is prepared to ascertain the financial

accuracy of accunting entries made. position of business