Distinction between Trail Balance and Balance Sheet

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 Trail Balance:-

1) The main purpose of preparing Trail Balance is to check the arithmetical accuracy of the books 📚 of account.


2) The Trail Balance contains all three types of Accounts viz., Personal, Real and Nominal Accounts.


3) Trail Balance does not reveal the financial position of the business.


4) Trail Balance does not reveal profit.


5) The column heads of trail Balance are date, particulars, debit and credit.


6) The preparation of the Trail Balance is not compulsory.


7) closing stock will not be shown in trail Balance.


8) Trail Balance is prepared whenever is necessary, generally, every month or for three months.


9) The preparation of Trail Balance is not compulsory.


10) The Balance of capital in the trial Balance does not include the Net profit or loss for the period under consideration.


11) Trail Balance is generally prepared before the final adjusting entries are passed.


12) from trail Balance it is not possible to know the advance and pre-receipts and payments.


13) Trail Balance does not reveal the networth of assets and liabilities.


Balance Sheet:-

1) The main object of the Balance Sheet is to ascertain the correct financial position of a business at a given date.


2) Balance Sheet contains only the balances of real and personal accounts.


3) Balance Sheet reveals the financial position of the Business.


4) Balance Sheet reveals the profit.


5) The column heads of the Balance Sheet are Assets and liabilities.


6) The preparation of Balance Sheet is compulsory.


7) closing stock is shown in the Balance Sheet.


8) Balance Sheet is generally prepared half yearly or yearly.


9) The preparation of Balance Sheet is compulsory.


10) The capital in the Balance Sheet includines the net profit or net loss for the period under consideration.


11) Balance Sheet is prepared after the adjusting are passed.


12) Balance Sheet discloses the advances, pre - receipts and payments.


13) Balance Sheet reveals the net worth of Assets and liabilities.



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