What are the difference between Trial Balance and Balance Sheet?

The difference between Trial Balance and Balance Sheet are:


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  • Trial Balance is the ‘means’ of a accounting process of which Balance sheet is the ‘end’ because a balance sheet is always prepared from the figures taken out of trial balance.
  • The purpose of preparing a trial balance is to check the arithmetical accuracy of account books; but balance sheet is drafted to reveal the financial position of the business.
  • The two sides of balance sheet are called ‘liabilities’ and ‘assets’ sides respectively but in case of trial balance the columns are ‘debit’ and ‘credit’ columns.
  • For completing the accounting cycle, the preparation of balance sheet is necessary; but the preparation of trial balance is not always necessary.
  • Trial balance contains in it all the three types of account viz. personal, real and nominal, but balance sheet contains only personal and real accounts.
  • Generally, trial balance does not contain closing stock but balance sheet does.
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