Trial Balance Vs Balance Sheet

(i)    A trial balance is prepared to test arithmetical accuracy of the ledger postings; balance sheet is prepared to ascertain the financial sheet is prepared to ascertain the financial position of the business enterprise.

(ii)    Trial balance is a list of all the ledger accounts – personal, real and accounts.

(iii)    The balance sheet is generally prepared at the end of an accounting period; but the trial balance may be prepared more than once in a year – after six months or three months or even on month.

(iv)    Trial balance always contains opening stock and rarely closing stock; a balance sheet includes only the closing stock.

(v)    Adjustments in respect of outstanding expenses ad accrued incomes are always made before the compilation of the balance sheet and no such adjustment is necessary for preparing a trial balance.

(vi)    A trial balance is the means whereas the balance sheet is the end to find out the financial position – the end purpose.

(vii)    The headings for the trial balance columns are debit and credit but of the balance sheet are assets and liabilities though, of course, both are no accounts.

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