Question
Write one difference between a Trial Balance and a Balance Sheet.
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Basis of Difference
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Trial Balance
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Balance Sheet
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1.
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Object
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It is prepared to check the arithmetical accuracy of the books of accounts.
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It is prepared to know the true financial position of the firm.
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2.
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Information about profit or loss.
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It is not possible to have information about net profit or net loss from a trial balance.
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Since net profit or loss is recorded in the Capital shown in Balance Sheet, it is possible to have the information about net profit or net loss from a Balance Sheet.
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₹
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₹
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Cash Sales
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40,000
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Credit Sales
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1,65,000
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Sales Return (Out of Credit Sales)
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5,000
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Purchases
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1,24,000
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Purchases Return
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4,000
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Carriage Inwards
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8,000
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Closing Stock
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36,000
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Rate if Griss Profit
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40% on Sales
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