What is difference between trail balance and balance sheet?
The major differences between the trial balance and balance sheet are as follows −
|Trail balance||Balance sheet|
Opening stock is considered.
Debit and credit.
Doesn’t take part in financial statement.
Contains nominal, real and personal accounts.
Can be prepared monthly, quarterly, half-yearly and financial period.
Prepared in column format.
Audit is not necessary.
Information of loss or profit is not provided.
Not necessary to prepared by law.
Prepared before adjustments.
Can’t tell true financial position of the firm.
General ledger is the source.
No thumb rule.
Closing stock is considered.
Assets and liabilities.
Will take part in financial statement.
Contains real and personal accounts.
Prepared in financial period.
Prepared in T-Format.
Audit is necessary.
Information on loss/profit is provided.
Prepared by law.
Prepared after all necessary adjustments are made.
Tells about true financial position of the firm.
Trail balance is the source.
Assets, liabilities and stockholders’ equity are properly arranged.
Published on 24-Jul-2020 10:12:35