Distinction/Difference Between Trial Balance and Balance Sheet:

Learning Objectives:

The following are the points of distinction/difference between trial balance and balance sheet:

Trial Balance		Balance Sheet
►	It is a list of balance extracted from the ledger accounts	►	It is a statement of assets and liabilities
►	It contains the balance of all accounts – real, nominal and personal.	►	It contains the balance of only those accounts which represents assets and liabilities.
►	It is prepared before the preparation of trading and profit and loss account.	►	It is prepared after the preparation of trading and profit and loss account.
►	It does not contain the value of the closing stock of goods.	►	It contains the value of closing stock, which appears on the assets side.
►	Expenses due but not paid and incomes due but not received do not appear in the trial balance	►	Expenses due but not paid appear on the liability side and income due but not received appear on the asset side of the balance sheet.

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