Question
Explain the difference between Trial Balance Sheet& Balance Sheet
| No. | Trial Balance | Balance Sheet |
| $1$ | Statement showing debit and credit balance of accounts is called a Trial Balance | Statement showing the financial position of the business on a particular date is called a Balance Sheet. |
| $2$ | Trial Balance has two sides debit and credit. | Balance Sheet has two sides “Liabilities" and "Assests" |
| $3$ | The objective of preparing Trial balance is to know the arithmetical accuracy of the accounts. | The objective of preparing Balance Sheet is to know the financial position of the business. |
| $4$ | It is not compulsory to prepare trial balance. | The preparation of Balance Sheet is essential. |
| $5$ | The balances of the ledger accounts i.e. personal, real and nominal accounts are shown in the trial balance. | In Balance Sheet, the balance of only personal and real accounts are shown. |
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| $1$ | Paid $Rs.500$ for shop rent $Rs.300$ for house rent. |
| $2$ | $Rs.400$ received for commission. |
| $3$ | A cheque of $Rs.800$ received for brokerage. |