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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| ₹ | |
| Stock in the beginning | 10,000 |
| Cash Sales | 30,000 |
| Credit Sales | 20,000 |
| Purchases | 35,00 |
| Rate of Gross Profit on Cost | 1/3 |