Trial Balance
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Balance Sheet |
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It is a list
of balance extracted from the ledger accounts
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It is a
statement of assets and liabilities |
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It contains
the balance of all accounts - real, nominal and personal. |
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It contains
the balance of only those accounts which represents assets and
liabilities.
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It is
prepared before the preparation of trading and profit and loss account.
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It is
prepared after the preparation of trading and profit and loss account. |
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It does not
contain the value of the closing stock of goods.
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It contains
the value of closing stock, which appears on the assets side. |
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Expenses due
but not paid and incomes due but not received do not appear in the trial
balance |
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Expenses due
but not paid appear on the liability side and income due but not
received appear on the asset side of the balance sheet. |
