what is the difference between balance sheet and trial balance?

Question

its accounts related questions.

Answer 1

In bookkeeping, the trial balance is a worksheet wherein all the balances of each ledger are entered in two columns, namely debit and credit. Trial balance is prepared in each financial period as a summary of the closing of the previous ledger.

A balance sheet, in formal bookkeeping and accounting, is a statement of the book value of a business or other organization or person at a particular date, often at the end of its "fiscal year," as distinct from an income statement, also known as a profit and loss account

Answer 2

Trial Balance Vs Balance Sheet

Answer 3

A balance sheet, in formal bookkeeping and accounting, is a statement of the book value of a business or other organization or person at a particular date, often at the end of its "fiscal year," as distinct from an income statement, also known as a profit and loss account (P&L), which records revenue and expenses over a specified period of timeIn bookkeeping.

The trial balance is a worksheet wherein all the balances of each ledger are entered in two columns, namely debit and credit. Trial balance is prepared in each financial period as a summary of the closing of the previous ledger. The total of the debit side should always be equal to the total of the credit side which proves the arithmetic accuracy of the ledger entry. So the trial balance is also a tool to detect any errors which may have occurred during the double-entry system of the ledger. However, a balanced trial balance does not necessarily guarantee that there is no error. For example, a transaction could have been removed from the ledger account, a journal entry might have been posted in the wrong ledger, or debit and credit entries could have been transposed. Such mistakes might not be shown in the trial balance. One feature of the double entry system that often confuses users, is that the terms 'credit' and 'debit' are used in the opposite way to what they would in another system, a bank account for instance.

In short a Trial Balance is very important as no Balance sheet can be prepared without it.

Trial Balance is all the General Ledger entries with their respective debits and credits only.

Answer 4

The Trial balance is basically a ledger for each account (one for A/R, another for Cash, etc...) as the transactions occur. So if it's a trial balance for Accounts Receivable it'd look like this... A/R Debits 250 150 Credits 300 200 The Balance sheet is the actual published (usually quarterly) statement that is issued to the public. There are quite a few differences, that you can wiki up yourself. The A/R account (there are many other accounts obviously) on the Balance sheet for that trial balance above would just state- A/R Credit- $100 (all added up)

Answer 5

Balance Sheet is a list of all assets, liabilities, and capital that a company owns in current period.The purpose for preparing balance sheet is to know a company financial position in current period.

A Trial Balance a list of all ledger accounts that have been updated(balance) including assets, liabilities,capital, income(revenues),expense.Purpose of trial balance is to check whether you make a correct post from the book of prime entry because the end of trial balance you should have equal balance on the debit and credit site.

Hope i will help you with my answers. I'm studying accounts right know... ( ' ',)

Answer 6

Trial Balance is balancing your GL accounts whereas Balance Sheet is a Statement of your Assets and Liabilities. They are interrrelated to the extent that the balance in the items of Balance Sheet is reflected.

Answer 7

Balance sheet is a company's financial statement. It has 3 parts assets (whatever the company owns), Liabilities (the company's debt) and owners equity (whatever is left for the owner to have). The owners equity and liability will always be equal to assets. Because you either borrow or invest money to run a company. It is more cleaned up version of trial balance.

Trial balance is the raw data of the balance sheet. Many times the current information may not be given clearly. For example total current acum. depriciation of a building may not be given in a trial balance, rather it will only contain monthly stuff. You may have to calculate or determine which stuff goes where on the balance sheet.

Answer 8

Trial balance is there to show all the accounts and to see if the debits and credits are equal. The Balance Sheet is to have more columns than the trial balance split up into your assets, liabilites, and net income accounts and you try to see if your accounts debits and credits balance in each column.

Answer 9

mainly.
the trial balance lists all the accounts - assets, liabilities, equity, expenses, revenuesand other a/c and calssified them into debit an credit.
the balance sheet lists assets, liabilities and equity only