☛ Trial balance is a list of balances from the ledger account while balance sheet is a statement of assets and liabilities.

☛ Trial balance contains balances of all personal, real and nominal accounts, while balance sheet contains balances of only those personal and real accounts which represent assets and liabilities.

☛ Trial balance is prepared before preparation of trading and profit and loss account, while balance sheet is prepared after the preparation of trading and profit and loss account.

☛ Trial balance is prepared to check the arithmetical accuracy of posting into ledger while balance sheet is prepared to indicate the financial position of the business on a particular date.

☛ Debt and credit balances are shown side by side while balance sheet is prepared on a T form basis, the left hand side showing liabilities while right hand side representing assets.

☛ Closing stock does not appear in the trial balance while it is shown on the assets side of balance sheet.