Difference Between Trial Balance and Balance Sheet: Learning Objectives:
Trial Balance Balance Sheet 1 It is prepared to verify the arithmetical accuracy of 1 It is prepared to disclose the true financial position of books of accounts the business 2 It is prepared with balances of all the ledger accounts 2 It is prepared with the balances of assets and liabilities accounts. 3 It is not a part of final accounts 3 It is an important part of final accounts. 4 It is prepared before the preparation of final accounts 4 It is prepared after the preparation of trading and profit and loss account. 5 It may be prepared a number of time in an accounting year. 5 It is generally prepared once at the end of accounting year. 6 Generally, it includes opening stock but not closing stock. 6 It always includes closing stock but not opening stock. 7 There is no rule for arranging the ledger balances in it. 7Assets and liabilities must be shown in it according to the rule of marshaling. 8 It is not required to be filed to anybody. 8 It must be filed with the registrar of companies if the business is a company. 9 Auditor need not to sign it. 9 Auditor must sign it. |