1. Object
a) Trial balance is prepared for knowing mathematical accuracy of accounts and the total amount of account balances with debit balances is equal to the total of amount of account balances with credit balances.
b) Objective of preparing balance sheet is to know the financial position of business.
2. Accounts
a) In trial balance, all accounts balances are included.
b) In balance sheet, only real and personal accounts balances are included.
3. Heading
a) Trial balance has two sides, one is debit side and other is credit side.
b) Balance sheet has also two sides but we show assets in one side and liabilities in other side.
4. Stock
a) In many cases, we only include opening stock in trial balance.
b) We only include closing stock in balance sheet.
5. Stages of Preparation
a) Trial balance is prepared before making trading and profit and loss account
b) Balance sheet is prepared after making trading and profit and loss account
6. Adjustment Entry
a) Trial balance is prepared before adjustment entries.
b) Balance sheet is prepared after adjustment entries.
7. Time of Preparation
a) Trial balance is made in the end of every month.
b) Balance sheet is prepared at the end of a year and checked by CA.
8. Proof
a) It can not be used as evidence in court.
b) It can be used as the proof in court.
a) Trial balance is prepared for knowing mathematical accuracy of accounts and the total amount of account balances with debit balances is equal to the total of amount of account balances with credit balances.
b) Objective of preparing balance sheet is to know the financial position of business.
2. Accounts
a) In trial balance, all accounts balances are included.
b) In balance sheet, only real and personal accounts balances are included.
3. Heading
a) Trial balance has two sides, one is debit side and other is credit side.
b) Balance sheet has also two sides but we show assets in one side and liabilities in other side.
4. Stock
a) In many cases, we only include opening stock in trial balance.
b) We only include closing stock in balance sheet.
5. Stages of Preparation
a) Trial balance is prepared before making trading and profit and loss account
b) Balance sheet is prepared after making trading and profit and loss account
6. Adjustment Entry
a) Trial balance is prepared before adjustment entries.
b) Balance sheet is prepared after adjustment entries.
7. Time of Preparation
a) Trial balance is made in the end of every month.
b) Balance sheet is prepared at the end of a year and checked by CA.
8. Proof
a) It can not be used as evidence in court.
b) It can be used as the proof in court.
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