Difference between trial balance and balance sheet?
The difference between Trial Balance and Balance Sheet lies in the rationale behind preparation of these statements. Trial Balance is prepared to check the arithmetic accuracy of books of accounts. Balance Sheet is prepared to disclose the financial position of the business. Trial balance is prepared with the help of all the ledger account balances whereas Balance Sheet uses the balances of Assets and Liabilities accounts, inluding Capital Account. Trial Balance has no proper format in which the elements or the items are to be recorded whereas Balance Sheet may be prepared as per specific arranagement order. Also, this is requried to be submitted to the registrar of the companies if the business entity is a company wheras Trial Balance need not be submitted to the registrar.