The major differences between a cash account and cash book are as follows −Cash accountCash bookIt is an account in a ledger.Transactions are made from journals.Serves the purpose of a ledger.Dependent on journal daybook.One type of cash account.Represents only cash balances.Journal folio.Cash transactions are recorded in the journal and then ... Read More

The major differences between profit and loss account and trading are as follows −Profit and loss accountRepresents profit earned or loss sustained.It ascertains net profit for a period.The balance is transferred to the capital account.Operating and non-operating incomes and expenses.It is prepared after trading account.The second step in preparing final ... Read More

The major differences between profit and loss account and profit and loss appropriate account are as follows −Profit and loss accountIt is prepared by all types of businesses.It doesn’t have an opening or closing balance.It is prepared after trading account.The items debited are all expenses.Not based on the partnership agreement.The ... Read More

The major differences between trail balance and adjusted trail balance are as follows −Trail balanceLedger account balance complied without any period-end adjustments.It is prepared first.It is account balances.To check the arithmetical accuracy of ledger.Checkbooks of accounts are balanced.It is less accurate.Only one version prepared.It is prepared in columnar format.Adjusted trail ... Read More

The major differences between trail balance and general ledger are as follows −Trail balanceIt is a statement of debit and credit balances.It is called a trail balance only.It summarises all ledger accounts.It may or may not contain suspense accounts.It can’t be analyzed details.No classification of accounts.It is prepared on final ... Read More

The major differences between fund flow statement and balance sheet are as follows −Fund flow statementBalance sheetDynamic in nature.No prescribed format.Helps in decision making.The need for a schedule of Change in working capital.Doesn’t deal with personal accounts.Various sources and uses of funds in a specific period.Not published.Prepared after financial accounts ... Read More

The major differences between cash flow statement and balance sheet are as follows −Cash flow statementsIt is also called a statement of cash flows.It is calculated for short periods (quarterly).International accounting standards 7 (IAS 7).Money coming into the business is termed as cash inflow.Money going out from the business is ... Read More

The major differences between consolidate balance sheet and balance sheet are as follows −Consolidate balance sheetIn case of subsidiaries companies, assets and liabilities are not mentioned separately.It is difficult to prepare.It reflects financial position of a firm and its subsidiary.Assets (parent + subsidiary) = liabilities (parent + subsidiary) + shareholders’ ... Read More

The major differences between balance sheet and income statement are as follows −Balance sheetIncome statementAssets, liabilities and equity.Helps in deriving liquidity of a firm.Prepared in last day of accounting period.Accounts transferred are not closedBalance will become opening balance for next period.Current ratio, quick ratio, cash ratio, receivable turnover ratio, inventory ... Read More

The major differences between the trial balance and balance sheet are as follows −Trail balanceBalance sheetOpening stock is considered.Debit and credit.Doesn’t take part in financial statement.Contains nominal, real and personal accounts.Internal useCan be prepared monthly, quarterly, half-yearly and financial period.Prepared in column format.Audit is not necessary.Information of loss or profit ... Read More