What are the differences Between Balance Sheet and Trial Balance?

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Basis of DifferenceBalance SheetTrial BalancePurposeThe purpose is to portray the financial position The purpose is to establish the arithmetic accuracy of the books of account.Information about ProfitsIt provides information as to the profitability and financial position of the firmNo such information is possible from the Trial balanceNecessity It is essential to prepare a Balance Sheet to complete the accounting process.Though desirable, it may be possible to to dispense with its preparationHeadings The two sides are headed as assets and liabilitiesThe two columns are headed as debit and creditCoverageOnly personal and real accounts appears in the Balance sheetIn the Trial Balance all accounts must be written: no account can be left outClosing stockThis Account appers in the Balance SheetNormally , a closing stock does not figure in the Trial BalancePeriodNormally, it is prepared only at the end of trading periodA trial balance is prepared normally every months and whenever desired.AdjustmentA Balance Sheet cannot be prepared without making adjustments for outstanding and prepaid items and without taking into account all events and transaction for the year.A Trial balance cab be prepared at any stage, without even making adjustments.

Basis of Difference	Balance Sheet	Trial Balance
Purpose	The purpose is to portray the financial position	The purpose is to establish the arithmetic accuracy of the books of account.
Information about Profits	It provides information as to the profitability and financial position of the firm	No such information is possible from the Trial balance
Necessity	It is essential to prepare a Balance Sheet to complete the accounting process.	Though desirable, it may be possible to to dispense with its preparation
Headings	The two sides are headed as assets and liabilities	The two columns are headed as debit and credit
Coverage	Only personal and real accounts appears in the Balance sheet	In the Trial Balance all accounts must be written: no account can be left out
Closing stock	This Account appers in the Balance Sheet	Normally , a closing stock does not figure in the Trial Balance
Period	Normally, it is prepared only at the end of trading period	A trial balance is prepared normally every months and whenever desired.
Adjustment	A Balance Sheet cannot be prepared without making adjustments for outstanding and prepaid items and without taking into account all events and transaction for the year.	A Trial balance cab be prepared at any stage, without even making adjustments.

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