Homework SourseHow are trial balance and balance sheet different and would
How are trial balance and balance sheet different and would a business owner use them.
Solution
Ans . Trial balance and Balance sheet is different because many reasons for that. Some different are given below. and every business owner use trial balance and balance sheet.
| S.No | TRIAL BALANCE | BALANCE SHEET |
| 1. | Trial balance show balance of all ledgers. | Balance sheet show balance only personal and real account. |
| 2. | Trial balance check the arithmetical accuracy. | Balance sheet show financial position. |
| 3. | Trial balance show opning stock | Balance sheet show closing stock |
| 4. | Trial balance is a list of balances extracted from the ledger accounts. | Balance sheet is a statement of assets and liabilities. |
| 5. | Trail Balance do not show any due income and expenses. | In Balance sheet expenses due but not paid show on the libilities side and income due but not received show on the assets side. |
