Distinction/Difference Between Trial Balance and Balance Sheet


Distinction/Difference Between Trial Balance and Balance Sheet:

Learning Objectives:

  1. What is the difference between trial balance and balance sheet?

The following are the points of distinction/difference between trial balance and balance sheet:

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

You may also be interested in other articles from “final accounts” chapter:

  1. Trading Account
  2. Profit and Loss Account
  3. Difference Between Trading Account and Profit and Loss Account
  4. Balance Sheet
  5. Difference Between Trial Balance and Balance Sheet
  6. Examples of Trading and Profit and Loss Account and Balance Sheet

Other Related Accounting Articles:

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